Bitcoin Guns for $10,000 as Cryptocurrency Mania Defies Skeptics | Julie Verhage, Eric Lam, and Todd White

• This year’s 10-fold increase adds to 120% gain in 2016
• Institutional investors seen entering: Gatecoin’s Glucksmann

Nov. 27, 2017 (Bloomberg) -- Bitcoin blew past $9,700 just a week after topping $8,000 and approached its closest ever to five figures, gaining mainstream market attention as it defies bubble warnings.

The biggest price jump since August consolidated during Japanese trading hours and vaulted the largest cryptocurrency’s value in circulation above the market caps of all but about 30 of the S&P 500 index members. The increase also buoyed its 10-day volatility to more than 15 times the level of the euro-dollar, the most traded currency pair.

“The more we hear about forks, it starts to fly higher again,” said Craig Erlam, senior market analyst in London at Oanda, said by telephone referring to persistent speculation that a split -- or fork in industry parlance -- may be in the offing. “It’s extremely difficult to determine a fair value for bitcoin. And there’s no news of substance on the regulatory front.”

Bitcoin’s ascent has stirred reflection by traditional market participants and fanned speculation of a potential bubble. From Wall Street executives to venture capitalists, observers have weighed in as bitcoin has risen about 45 percent over the past two weeks. By comparison, it took the S&P 500 Index since February 2014 to achieve a similar increase.

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READ MORE: Bloomberg