Bitcoin ($BTC) hit an all-time high of S$7110.59 (US$5251.54) around 5.15 pm SGT on local bitcoin exchange, CoinHako, on October 12.
The digital currency broke the US$5,000 mark around 4 pm local time across cryptocurrency exchanges around the world. The bullish surge happened despite Russia’s ban on cryptocurrency exchanges.
It first hit the milestone briefly on September 2 before plummeting to as low as US$3,000 within days – the biggest sell-off since July. The massive correction was fueled by China’s ban on Initial Coin Offerings (ICOs) which occurred just three days after (September 5).
The plunge in bitcoin’s value was previously predicted by Goldman Sachs’ chart analyst, Sheba Jafari. The lead technical strategist forecasted that bitcoin will reach US$4,827 before losing half its value, a move many call a self-fulfilling prophecy.
“Speculators are bullish on bitcoin’s value with the anticipation of China’s reintegration with global crypto markets,” Aurelien Menant, CEO of cryptocurrency exchange Gatecoin, told CNBC by email.
Since the launch of Bitcoin in 2008, it has risen from mere cents to the thousands, minting a new set of millionaires in the process. Bitcoin was created by an unknown person or group, going by the name Satoshi Nakamoto, as an open source code using blockchain technology.
The decentralised currency has attracted both support and condemnation from personalities and governments worldwide, with many looking to regulate it and the accompanying billion-dollar market of other cryptocurrencies. Like its fiat counterparts, it is without intrinsic value. However, fiat currencies have the backing of governments.
Bitcoin will see a hard fork in November, creating Bitcoin Gold. The fork process is basically the creation of a new cryptocurrency when the blockchain splits into two. Such forks are the result of a competing faction of Bitcoin backers who want to see a different code implementation than others.
This would mark Bitcoin’s second fork, as it has previously split, creating Bitcoin Cash.