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Investors heavily sold bitcoin in trading Friday morning after the cyrptocurrency hit a record high of $1,206.02 in overnight trading.

The surge in the price of bitcoin has been attributed to growing confidence that at least one of the three proposed bitcoin-focused exchange-traded funds, including the long attempted Winklevoss ETF, will gain approval from the Securities and Exchange Commission by a March 11 deadline despite the fact that some analysts believe that none of the funds will be approved.

Approval of one of the funds would provide easier access to bitcoin for traders and would improve liquidity in a market that despite seeing an increasing price has been stunned this year following an investigation by Chinese authorities resulted in a temporary suspension of bitcoin withdrawals from the country’s three largest bitcoin exchanges.

Others cite different reasons for the price increase, claiming that as bitcoin has become more mainstream it now follows the price of the overall share market that has been increasing since the election of President Donald J. Trump in November resulting in all times highs on indices tracking both the New York Stock Exchange and the NASDAQ markets.

Bitcoin’s previous record high of $1,165 to the U.S. dollar was achieved in 2013 at the high of the first great bitcoin boom that was fueled in part by the now disgraced former bitcoin exchange Mt. Gox.

Since dropping below $200 in January 2015 the price of bitcoin has steadily grown since with the price exceeding $1,000 for the first time in three years on January 2nd.

At the time of writing bitcoin was trading at $1,162.15 after dropping as low as $1,124.36 at the bottom of the profit taking sell off.

Picture: Kassy/Sketchport.

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