Bitcoin, which has more than doubled in value since the start of the year, surpassing the $8,000 mark on Tuesday.
Bitcoin exceeded $8,325 before giving some of its profits up, as per the data published on the CoinDesk website. The value of Bitcoin has skyrocketed by more than 120% since the beginning of the year.
Exuberant interest from private investors raised Bitcoin prices to around $20,000 in late 2017.
According to Andy Brenner of National Alliance Securities, it is natural that Chinese investors are utilizing digital currencies as a way of diversification.
On Monday, he even wrote in an email to CNBC that the recent demand for Bitcoin has coincided with a strong weakening of the yuan against the dollar.
Iqbal V. Gandham, UK-based online trading firm eToro managing director, told CNBC on Tuesday that the negative news is no longer negative.
On the other hand, isolated situations like Samsung and HTC phones with Bitcoin or Amazon markets accepting digital currencies are starting to impact consumer adoption.
Gundham’s announcement that one of the world’s largest asset managers, Fidelity Investments, begin trading crypto for institutional clients boosted prices.
BTC’s recent rally puts pressure on shorts
Meanwhile, Bitcoin’s recent increase is placing pressure on short selling, according to digital currency expert David Gerard.
Gerard said on his blog Monday that “Whales” are buying up the market until short positions drive out. Short sellers buyback at the market price at liquidation. Causing a price increase as a flood of purchasing hits order books at the same moment.
The rise in bitcoin links to an inflow of dollar-substitute coins known as “tethers”. Which is prominent to the digital market to place liquidity. Same people owned and run tether as crypto exchange Bitfinex.
However, the peg value to a real dollar is questionable, and the NY AG is investigating Bitfinex.
Gerard said he expects Bitcoin and other cryptocurrencies to continue rising despite big questions about the legitimacy of recent purchases.
New suckers might attract by mainstream media coverage with not just tethers but actual cash. Gerard also added that he has foreseen that another mainstream crypto bubble would pop but not anytime soon.
