Bitcoin closed in on another milestone Friday, as the digital currency approached $6,000 for the first time to put its gain in 2017 to more than 500 percent.
As bitcoin continues climbing, Twitter users are speculating that the rise could be driven by everything from a cash shortage in Zimbabwe to an increase in margin trading. If one thing is certain: speculation has a part to play in the top digital token’s latest surge.
The push higher comes just three days after bitcoin suffered its biggest one-day drop in a month on rising concern that regulators are increasingly targeting digital currencies. It’s added almost $500 in value in the past two days alone while reaching a record high.
The end-of-week rally is another sign that the threat of oversight won’t dampen enthusiasm for digital currencies. Bitcoin was quick to shrug off China’s move to tighten its grip on trading, extending an eight-fold increase over the past year to a record high on Oct. 13.
Four days later, bitcoin fell as much as 8.4 percent after the Commodity Futures Trading Commission released a primer on virtual currencies, reiterating its view that virtual tokens can fall under its authority. The U.S. Securities and Exchange Commission has already said tokens from some ICOs can be deemed securities under its oversight.
(c) 2017, Bloomberg · Lily Katz