Bitcoin Hits New Record High, Over $1,900

Bitcoin has broken record after record in 2017. While the trailing few years have each seen their fair share of large run ups, none have been as dramatic as 2017. Outside of late 2013 when BTC skyrocketed from $80 to almost $1,000, this is the largest percentage increase that the cryptocurrency has seen.

On May 18th, Bitcoin topped $1,900 USD for the first time in its history, at least on some exchanges, and as reported by Coindesk. While it has (at the time of writing) settled closer to $1,850, there is a very real possibility that $1,900 will once again be eclipsed in the next few days. Every time it seems that BTC is due for a retreat, it manages to hit a new high, and this theme has never been more apparent than in early 2017. 

Industry analysts have been speculating that political turmoil has contributed heavily to Bitcoin’s recent surges. Of course, this is most related to the United States as the USD is the most prominent worldwide currency, but worldwide uncertainty is a contributing factor. While the USD is a driving factor in BTC pricing, the majority of Bitcoin trading does not take place in the United States, but instead in China.

Equity Markets and Bitcoin Prices

Beyond the political landscape, the world equity markets will also play a large role in where Bitcoin goes from here. Just as precious metals have long been seen as a hedge against paper, government currencies, so too are cryptocurrencies. In fact, cryptos have seen a much, much healthier hedge against the USD than metals. The most interesting element, however, is the general lack of correlation between equity markets and Bitcoin’s gains in 2017. While it would seem logical to find a correlation, there has not been a strong one as of yet. Again this likely can be best explained by the violent political climate of both the US and worldwide.

If there is one safe bet, it is that the political scene in the USA is not likely to settle, at least not significantly, any time soon. If this is your feeling as to why BTC is catapulting to new daily highs, buying would be wise. With that said, however, Bitcoin’s growth has allowed other, lesser known currencies to hit new highs as well. Ethereum, among others, are trading at many multiples higher than they were just months or even weeks ago.