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Bitcoin breaks the $10 mark

Bitcoin Breaks the Ten Dollar Barrier

As of 18:36:30 GMT on August 2nd, Bitcoin broke the $10 price barrier on MtGox for the first time in 2012.  Bitcoin closed at $9.35 at the end of the day on July 31st, and, as of 1:54 GMT August 3rd, is currently trading at $10.65, indicating a rise of almost 14% in just two days.  The trading price hit a new 2012 high of $11.00 around 22:00 GMT.

Some are suspicious of the recent run-up in price over the last two months, and do not believe it will last.  The price at the start of 2012 was only $4.72, and, with the current trade price of $10.65, shows a whopping gain of 126% over eight months.  Most of that gain was only seen over the most recent two months – June and July – of 2012, amid concerns that this is yet another bubble-based rally, with the potential for a mirroring of the boom and bust of the summer of 2011.

Others are more optimistic, giving reasonable explanations for the rally, such as the potential that  investors with high net-worth are beginning to invest significant funds into bitcoins, or conducting market trend analysis to legitimize the price increase.  The lack of increased activity shown on Google Trends also helps bring security to the idea that the current rally is sustainable, and not a bubble.  An increase in Google Trends activity tends to indicate hype, and a rally without hype might indicate a rally with legs to stand on, instead of a rally built on a group of get-rich-quick speculators.

While it is certainly impossible to predict the future price of bitcoins, the steady 3-month rally with every week ending at a higher price than the last does seem to bode well for those who believe the rally is sustainable and will continue.

[UPDATE]: As of 8:00 PM GMT on August 3rd, Bitcoin is trading at $11.08, continuing the rally with a rise in price of 18.5% in less than 3 days.

Are you making bank on the current rally?  Post a comment below, or send your story to ed@bitcoinmagazine.net.

 

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  • Danny Key

    well once bitcoin reaches a mere 1 billion cap thats about £100 per coin. Although we will see more volatility in bitcoins it is becoming parabolicly more stable overtime, the potential is immense but it is only potential.

  • http://profiles.google.com/miscreanity Ramon Pla

    As investor and speculation capital flows into Bitcoin at a steady rate, a bubble is much less likely to form. If the exchange rate remains in that stable range or consistent rising channel, users wary of volatility will be more inclined to participate.

    That includes business interest being drawn to the growing pool of wealth that could offer a lucrative market to be tapped into. Once that happens, Bitcoin gains a sustainable, productive foundation.

  • http://twitter.com/CreamCracked Edward Wohlman

    Looks like it may easily break 100 in the next couple of days.
    Wish I’d paid attention a bit sooner.