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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 [email protected]

 

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  • Anonymous

    Google trends might not show more traffic but the BitcoinTalk forum statistics show rapid growth.  As does r/bitcoin (Reddit), and it appears Bitcoin StackExchange does too.

  • Bangers

    From a chart point of view it doesn’t look like we’re in bubble territory, unlike the 2011 spike to 30 bucks. That move certainly looked and behaved like a parabolic bubble. That was a text book 5 wave impulse move with very extended 5th wave followed by a 90% crash very similar in shape to the 25 year pattern in the NASDAQ leading up to the top of the dotcom bubble in 2000.

    Compare the charts here to see the distinct similarities:
    http://bitcoincharts.com/charts/mtgoxUSD#tgMzm1g10zm2g25zv 

    http://uk.finance.yahoo.com/echarts?s=%5EIXIC#symbol=%5Eixic;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; 

    The recent move up in Bitcoin has been far less dramatic and has been made up of a series of of minor impulse patterns which could either just be part of a larger corrective pattern from the $30 high or else the initial stages of a larger 3rd wave higher (usually the longest and never the shortest in a valid 5 wave impulse move) that would, eventually, take us well beyond the previous all time high.

    Neither option precludes a pullback in the near term but, the way things are shaping up up the moment, I would favour the larger move higher. It may start from here, or further down the line. We’d need a break of the old high before we could start to get any sort of confirmation. If that does transpire, the move would likely be quite steep rather than a drawn out affair.

  • D,

    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.

  • disqus_TLcMqwnySr

    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.

  • two_weeks_without_bitcoin

    Skim through from the linked page, it should explain what triggered this rally. 

    https://bitcointalk.org/index.php?topic=63877.240

  • Edward Wohlman

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

    • None

      About to pass 200