You got the feeling that it was only a matter of time.
Bitcoin (BTC/USD) just broke through $400 on Bitstamp for the first time in nearly a year, a new milestone in its biggest rally in 18 months.
Bitcoin hit $300 only a week ago. In highly November 2013-esque fashion, it has taken on a life of its own, casting aside its steady climb and soaring by another 13% during the past 24 hours to $413.
The pace of bitcoin’s rise accelerated noticeably yesterday, when it gained over 10% within a 5-hour span.
Traders have come to the point of driving the price higher knowing full well that the next one will do the same.
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Bitcoin has now more than doubled since falling below $200 in late August.
Chinese exchanges like Huobi already breached $400 a few hours earlier. The USD equivalent on Huobi hit $425, about 5% ahead of Bitstamp, and further suggesting that this party is being led by Chinese traders.
Prices on BTC-e are roughly 5% below those on Bitstamp and 10% below those on Huobi, a slightly lower gap than yesterday but still an unsettling phenomenon for one of the largest USD exchanges.
Bitcoin is now a whopping 54% above its 50-day moving average (MA), its biggest differential since the great bubble of November 2013.
Shares of Bitcoin Investment Trust (OTCMKTS:GBTC) opened the day at $49.00, their highest level since shortly after launching for public trade in May, and implying a 31% premium to their underlying bitcoin value. The shares are now trading at $47.00, or a 23% premium.
One can assume that a big correction is in order, the question now being how high bitcoin will go first.