Bitcoin reached a record high by breaching the $5,000 barrier this morning. According to a CNBC report, the price of one bitcoin hit an all-time high of $5,231.28 this morning. As of this writing, the cryptocurrency is trading at $5,218.92. It has been flirting with the $5,000 price target for a couple of days, reaching as high as $4,900 the day before yesterday, and it is up by 424% to date this year.
The jury is still out on reasons for bitcoin's rise today. The CNBC report claims that investors are bullish about a reversal of the cryptocurrency's ban in China. The Asian country had banned bitcoin last month. However, a report on Chinese news agency Xinhua claims that China will likely resume bitcoin trading with regulations and licenses in place. "We shall adopt '0-tolerance policies' towards crimes hidden underneath and take measures such as record-keeping, licensing, AML processes, real-name, limiting large transactions," the agency is reported to have stated. The Chinese yuan is the second most traded currency on bitcoin after the U.S. dollar. (See also: How Might China’s Ban Affect Bitcoin?)
A report on Coindesk has a different take and cites increased institutional interest in the currency as a reason for bitcoin’s rise in recent weeks. "For example, a rumored 'bitcoin desk' at Goldman Sachs would certainly be a game changer for the nascent market," the publication writes.
Some analysts have predicted higher prices for bitcoin. Thomas Glucksman, head of APAC business development at Gatecoin, said that bitcoin will "creep closer" to $6,000 by the end of this year and expects more volatility next month due to unresolved issues relating to SegWit2x. Billionaire Michael Novogratz has estimated a $10,000 price target for the cryptocurrency. (See also: Bitcoin Is Still Flirting With $5,000 Price.)
The increase in the digital currency's price has had a mixed effect on the price of other cryptocurrencies. Ethereum n...