Markets

Bitcoin hits six-week high as cryptocurrency surge is on the cards

Bitcoin has hit a six-week high amid reports that major financial firms are considering entering the crypto market, flaring rumours of a possible cryptocurrency surge.

The virtual currency was up 4.4 per cent yesterday, its sixth consecutive gain in as many weeks, trading at $9,340.88 (£6,701.66) on the Bitstamp platform. The digital currencys rally comes after it tumbled 50 per cent in the first quarter of the year after an all-time high of $20,000 in December 2017.

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According to cryptocurrency tracker Coin Market, bitcoins surge increased demand for other cryptocurrencies like ethereum, driving market capitalization of digital currencies to $427bn.

According to Nigel Green, the founder and CEO of financial consultancy De Vere Group, the recent gains among crypto in recent days is a sign that digital currencies may be due for another major rally.

“Current market activity indicates that the major cryptocurrencies are set for another considerable surge in prices gains in the near future,” said Green. “Were certainly entering crypto bull territory, with many retail and institutional investors now finding that cryptocurrencies can no longer ignore the opportunities.”

Read more: Bitcoin is above $8,000 after yesterday's spike – but will it last?

Green explained that the surge in cryptocurrencies was due largely to the growing interest from major banks and financial firms, as well as a “growing awareness of the need and demand for digital, global currencies in a digitalised, globalised world.”

Yet of all the cryptocurrencies on the market, it is etherum which the De Vere boss sees as the most powerful driver in the market, predicting a significant surge in the digital currencys value this year, which could hit $2,500 by the end of 2018.

However, Green cautioned that the as-yet unregulated cryptocurrency market remains volatile: “Caution should be exercised and professional advice sought.”

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