Bitcoin soars then falls back; banks raise risk concerns

Vyacheslav Prokofyev  TASS

Vyacheslav Prokofyev TASS

The concerns about its volatility have led some Wall Street banks and trade groups to raise concerns about the potential implications of trading bitcoin.

On the CoinDesk exchange, Bitcoin jumped more than 25% on Thursday, hitting an intraday record of $16,569 per coin, just eight days after topping the $10,000 milestone.

At the same time, it's a considerable amount less than the prevailing price on Bithumb, South Korea's most voluminous exchange, and local exchanges Coinone and Korbit, all of which seeing prices above $19,000 (denominated in the won, the country's national currency).

Bitcoin may be digital currency, but why would anyone spend it? Gemini said bitcoin deposits were temporarily unavailable. JPMorgan Chase Jamie Dimon has called bitcoin a "fraud". Morgan Stanley declined to comment. In addition, experts now believe that the USA market is not ready to deal with bitcoin options and futures yet.

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I think we should continue with the line of defending well and looking risky when attacking. "It looks like they are playing to win the Premier League too".

As bitcoin price fluctuates wildly, other cryptocurrencies like ethereum and litecoin are falling.

Peterffy noted that if bitcoin futures were trading at that time, under the CBOE's rules those futures likely would experience repeated trading halts because of limits on how high or low the price can move during the trading day.

A bitcoin is often referred to as a decentralised digital currency, or for many it is more commonly known as a digital asset. With the currency's tremendous run up in price, it could become a target for those who doubt that it deserves its current lofty value.

From a currency associated with terrorism and illegal activities to developing into a "mass frenzy", Bitcoin's value has surpassed all expectations and many bears have turned into bulls now. Some say they serve merely to facilitate money laundering and illicit, anonymous payments.

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