Bitcoin Breaks Records as Sterling Rallies
Bitcoin broke the $10,000 mark on Tuesday night, posting over 900 percent gains this year so far, the largest gain of all asset classes, as growing institutional demand for cryptocurrencies of all types continues to propel the markets upward. As of 2:15 p.m. HK/SIN on Wednesday, bitcoin was trading at $10,486.63 according to Coinbase, falling back from highs near $10,750 hit earlier in the session.
Excitement around bitcoin’s surge has encouraged many people to shell out big bucks for the cryptocurrency, though many analysts cling steadfastly to the belief that bitcoin is in a bubble that may be about to burst. Causes for concern include technical challenges and rising competition from other cryptocurrencies as well as cryptocurrency’s general disconnect from real financial markets and the global economy. Still, bitcoin’s historic race from $9,000 to $10,000 in under a week gives traders much optimism that there is still potential for profits.
Sterling Rallies on Brexit Rumors
The British pound was up 0.34 percent to $1.3381 on Wednesday after The Daily Telegraph reported that the EU and Britain had come to an agreement regarding Brexit. The report failed to name sources for this critical information, and was later called into question by an as-of-yet unnamed British government official. Nevertheless, the pound edged higher as traders expressed optimism that the end is near. The sterling was also up against the euro, trading at 0.886.
The dollar was unchanged against the yen on Wednesday morning, supported by strong data after U.S. consumer confidence reports showed that confidence had risen to near 17-year highs in November, supported by a buoyant labor market. The dollar eased slightly against the euro, trading at $1.1857.