BITCOIN PRICE SURGE: 'TIDE TURNING' FOR CRYPTOCURRENCY AFTER DRAMATIC BOOST IN VALUE

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Cryptocurrencies have experienced a sudden and
unexpected price surge, following months of market
decline.
Bitcoin , the world's most valuable, shot up in value by
almost a quarter in the space of 48 hours, reaching as
high as $3,950 (£3,120) on Wednesday before losing
$100 and slipping back to $3,850 (£3049).

Other leading cryptocurrencies experienced even
larger gains, with bitcoin spin-off bitcoin cash rising
by 64 per cent since the weekend.
Cyber security pioneer John McAfee , who is now one
of the most prominent figures in the cryptocurrency
space, said the price gains could suggest a more
significant market shift.
"Bitcoin at $3850. Tide may be turning. Altcoins
accelerating even faster," Mr McAfee tweeted.
"Today's winner is Skycoin: up 45 per cent. My
Skycoin tattoo was prophetic. It takes time, but the
coins I choose, eventually, tend to win. Keep your
fingers crossed folks. Last week may have been the
time to buy."

Cryptocurrency analyst Mati Greenspan said there was
a simple explanation for the dramatic price reversal.

"For those wondering what's causing crypto's
impressive push from the floor this morning, look no
further than short covering," the senior market
analyst at online trading platform eToro, told The
Independent . "People are looking to reduce their
exposure and closing out high risk sell positions
before the holidays and this is creating upward
pressure on market prices, which is ultimately
resulting in a rally."

The dramatic price gains come at the end of a
disappointing year for Bitcoin, having traded at close
to $20,000 (£15,850) in December 2017.
The wildly fluctuating price is not unusual for the
notoriously volatile cryptocurrency, with five previous
cycles seeing bitcoin fall by an average of 85 per cent
each time.
Before the latest recovery, the price of bitcoin was
around 83 per cent down on its 2017 high.

Opinion is divided over whether bitcoin will return to
its previous highs, with some analysts suggesting that
bitcoin will eventually become worthless.
Others are more positive in their forecasts, including
Mr McAfee, who famously predicted that one bitcoin
will be worth $500,000 (£396,000) in 2020.
"If not, I will eat my d**k on national television," he
tweeted in July 2017. At the time, one bitcoin was
worth around $1,800 (£1425).

https://www.independent.co.uk/