Bitcoin Valuation Skyrockets to $5000

Source Shutterstock

Source Shutterstock

At press time, bitcoin had risen further to $5,205.65. Its market capitalization is 53 percent of the market capitalization of all cryptocurrencies.

Bitcoin surged through the $5,000 level on Thursday for the first time since the launch of the unregulated virtual currency more than eight years ago. The value of Bitcoin has jumped 8% on the day as investors gain more confidence in the cryptocurrency market. Despite this, Goldman Sachs is open to the Bitcoin currency and is exploring a bitcoin trading operation.

On Tuesday, Vladimir Putin called for regulations on cryptocurrency, labeling it a "serious risk" used for illegal activity such as money laundering, tax evasion, and funding terrorism.

Neil Wilson, senior market analyst at ETX Capital, said investors in bitcoin are also buoyed by news that USA banking giant Goldman Sachs plans to trade the cryptocurrency. On the one hand, China is closing Bitcoin trading in the country, Russian Federation is planning to implement a ban on the access to Bitcoin exchange websites in the country.

"Bitcoin was created to operate outside of the influence of governments and central banks, and is doing exactly that", said Iqbal Gandham, Managing Director at retail trading app eToro, which has seen huge increases in cryptocurrency trading volumes.

The price of Bitcoin reached an all-time high, smashing through the $5,000 mark as it rebounds from a short period of uncertainty. "So to us, this bounce back in price is no surprise", the analyst added. But determining its value is hard.

Other cryptocurrencies - whose prices tend to be highly correlated to bitcoin - also rallied.

At the start of this year, Bitcoin was trading at around $1,000.

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