Bitcoin at $10k Nov 29BI Intelligence

The price of Bitcoin surpassed $10,000 for the first time on November 29 to reach $10,044 at circa 1:45 UTC (8:45 EST), an unprecedentedly high value for a cryptocurrency. At this time of writing, Bitcoin had climbed even higher, and was trading at $10,414, according to the CoinDesk index. This means the asset is now up 923% since the start of 2017, and 42% since the start of November. Bitcoin's market capitalization now stands at about $170 billion: For context, the market caps of major appreciating brands Tencent and Facebook stand at $510 billion and $533 billion, respectively.

Bitcoin's price has been on the up for almost a year, but started spiking dramatically over the weekend, apparently driven by a recent proliferation of Bitcoin-based investment vehicles being launched or announced by incumbent financial institutions (FIs), according to analysts. Such vehicles' proliferation, which aim to give institutional investors less risky exposure to the booming yet very volatile asset, seem to be fueling retail investors' enthusiasm for Bitcoin, in anticipation of institutional funds pouring into the space, and incumbents' apparent endorsement of the asset.

As Bitcoin enters the big league, here's what this could mean for stakeholders:

  • Retail investors. With Bitcoin at astronomical price levels, institutional investors may become even more eager to pour their money into the asset class through the growing range of instruments being rolled out to help them do this. As this happens, the cryptocurrency's value seems likely to appreciate even more, as a new investor class with more capital commits to the asset. In the short term, then, retail Bitcoin investors are likely to see huge gains. However, the savvy will keep a close eye on their holdings: Bitcoin-based investment instruments' ability to deliver on their promise of providing relatively de-risked access to the asset for incumbents is still far from uncertain, given that <a href="" target="_blank" rel="noopener [...]