On Saturday morning, Bitcoin, the cryptocurrency, surpassed the $18,000 (£13,500) barrier for the first time.
According to the Coindesk BPI, at around 10:20 am (UK time) on Saturday, the controversial currency bumped over the mark. It prevailed higher than $18,000 for about five minutes before dropping back to $17,990 at 11:30 am.
Yesterday morning, Bitcoin had threatened to reach $18,000, reaching about $17,900. At the start of the week, Bitcoin futures contracts have changed hands for $18,000. However, this is the first time that the spot rate has gone beyond such a level.
The new price highs happened after the Financial Conduct Authority (FCA) published feedback from a discussion paper that was issued earlier this year regarding the technology that underpins cryptocurrencies yesterday.
Respondents said that the current FCA rules “are flexible enough to accommodate” the utilisation of distributed ledger technology. However, others, doubted whether the blockchain-style technology was “compatible” with the regulatory regime of the FCA.
On Thursday evening, Andrew Bailey, the FCA boss, warned that bitcoin investors should “be prepared to lose” all of their money. Like most financial regulators, bitcoin is not regulated by the FCA. However, Bailey did emphasise that bitcoin isn’t “prevalent enough to be a systemic threat” to the financial markets.
Bitcoin was given a big increase at the beginning of the week after the Chicago Board Options Exchange started allowing the trading of bitcoin futures.