Bitcoin trades above $5000 for first time ever

Bitcoin trades above $5000 for first time ever

It's the first time the cryptocurrency has confidently shot past $5,000. Ethereum tokens, the second largest digital currency, were up about 2%, and bitcoin cash - an alternative formed by early bitcoin developers gone rogue - had gained close to 3%.

The cryptocurrency has increased in value by more than eight percent.

Bitcoin has raised in value by more than 75 per cent in the last four weeks.

Bitcoin nearly reached US$5000 at the start of September, but fell back sharply after the head of Goldman Sachs blasted the cryptocurrency as a "fraud" and as China forced exchanges to close down, sparking fears of a broader crackdown. And last month, JPMorgan CEO Jamie Dimon called the currency a "fraud" that will "blow up". On Wednesday, Russian President Vladimir Putin warned of the risks surrounding the cryptocurrency market. "So we expect some investors to be surprised by bitcoin bouncing back", said Iqbal Gandham, managing director at broker eToro UK, in a note on Thursday.

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The soaring value of bitcoin and other cryptocurrencies comes despite growing warnings over a price bubble.

Interestingly, not all cryptocurrencies are following bitcoin's lead today, which usually happens when the incumbent cryptocurrency experiences price fluctuations.

"It is folly to think that bitcoin will ever be allowed to supplant central bank-issued money", he wrote in the Guardian this week.

That said, Goldman Sachs is reportedly considering offering bitcoin trading and even China is considering easing restrictions of the cryptocurrency.