Bitcoin surges past $19,000, nears all-time high before crashing

On Tuesday, Nov. 24, bitcoin’s price rose beyond $19,000, edging closer to its all-time high of $19,783 in 2017. The rally didn’t last, however, with the value of bitcoin falling 14% by Thursday, Nov. 25. Other cryptocurrencies also experienced significant losses.

Why should we care?
Some industry watchers argue that the growth of traditional financial services providers (including Square and PayPal) offering support for cryptocurrencies may be behind bitcoin’s dramatic price rise this past week. It appears Wall Street is waking up to the increasing prominence of bitcoin, with BlackRock’s chief investment officer Rick Rieder saying bitcoin is “here to stay” due to millennials’ penchant for digital payments, and investor Stanley Druckenmiller noting that the cryptocurrency could eventually become an asset class. Regardless, bitcoin’s sharp price drop, which has partly been attributed to fears over tighter regulations, illustrates how quickly a crypto boom can fizzle out and calls into question the durability of quick price hikes.