Bitcoin, which has been on a rampaging bull run over recent weeks, has again powered higher, jumping over the psychological $9,000 mark for the second time this week—though it failed to hold onto the gains.
The bitcoin price, reaching highs of $9,097 per bitcoin on the Luxembourg-based Bitstamp exchange, moved south again rapidly after spiking higher.
The bitcoin price has been swinging wildly as investors and traders try to get a handle on the market.
Bitcoin, despite being the most widely traded cryptocurrency with trading volume into the billions of dollars every day, still struggles with wild price swings due to so-called market whales moving large volumes of bitcoin at above or below the current market value.
The sudden rise, and subsequent retreat, in the bitcoin price comes after a widely read Forbes report suggesting the ongoing U.S China trade war could eventually cause bitcoin, ethereum, and other major cryptocurrencies to rise.
Ethereum, meanwhile, has been surging over the last 24 hour trading period, up 6%, boosted by a significant increase in the number of daily transactions on its network.
Ethereum transactions have surged to their highest level since early February 2018, according to reports, while activity level on the ethereum blockchain is nearing levels last seen when the ethereum price was at its all-time highs in January 2018.
The bitcoin price jumped over $9,000 for the second time this year but failed to hold the gains, dropping back to around $8,650 per bitcoin.
Elsewhere, Jehan Chu, co-founder and managing partner at fund management firm Kenetic Capital, said he thinks the ethereum blockchain is leading the way for the rest of the market.
“From a utility standpoint, we’re seeing ethereum as the lead,” Chu told Bloomberg, a financial newswire, adding he sees bitcoin reach a whopping $30,000 per bitcoin before the end of the year.
“The rate of adoption and the rate of development that the ethereum team is providing a decentralized global computer is just astounding. People keep saying ethereum is going away but it’s not going away and it’s still one of the largest coins in the world with the largest developer audience.”
The ethereum price fell along with bitcoin after bitcoin jumped higher.
The bitcoin and wider cryptocurrency market has doubled in value so far this year after losing around 90% of its value throughout 2018.
The 2017 epic bitcoin bull run, which saw the bitcoin price balloon from under $1,000 to almost $20,000 in less than 12 months, was mostly driven by trader and investor hopes institutional money was about to flow into the market.
Last year’s sudden pull back happened as that investment failed to materialise.
While many are still hopeful that instutional investment will eventually arrive the latest bitcoin and cryptocurrency bull run appears to be driven as much by interest in bitcoin and crypto from the world’s biggest tech companies, including Facebook and Twitter.