* Bitcoin at 18-month high
* Analysts point to safe-haven bids, Libra enthusiasm
* Biggest cryptocurrency up more 260% since January
* Bitcoin's CME futures spur buying activity (Adds analyst comments, new bitcoin high, updates prices, addsNEW YORK to dateline)By Gertrude Chavez-Dreyfuss and OLGA COTAGANEW YORK/LONDON, June 26 (Reuters) - Bitcoin jumped to an18-month high on Wednesday, as investors looked for safety inalternative investments amid geopolitical tension, and cheeredprospects that Facebook Inc's Libra token could pushcryptocurrencies into the mainstream.The world's biggest cryptocurrency has surged in value sinceApril and on Wednesday hit a peak of $13,666.02 onthe Bitstamp exchange, the highest level since January 2018. Sofar this year, bitcoin has risen more than 260%, although itremains below its all-time high of nearly $20,000 hit inDecember 2017.
Bitcoin last traded up 14.7% at $13,475.
Investors have flocked back in to digital currencies after abruising 2018. Bitcoin has risen for eight consecutive days. Andnow Facebook has said it would offer its own cryptocurrency, theLibra coin, by end of June 2020. Analysts say Facebook's announcement this month has revivedinterest in digital currencies, while investors seeking safetyhave also pushed up bitcoin's price."Cryptocurrency traders were reinvigorated by Facebook'slaunch of their own digital coin and momentum appears to bestirring up fresh new investors," said Edward Moya, seniormarket analyst, at online FX broker OANDA in New York."Bitcoin skeptics are cautious in trying to stop this surgeand may look for the next key resistance level which is$15,000," he added.
With major central banks keeping interest rates nearall-time lows, investors have been looking for ways to diversifytheir portfolios, including through cryptocurrenies, analystssaid.Bitcoin CME futures volumes have also increased in the pastfew days, as investors look for ways to get their hands on thecoin via the derivatives market.
Traders, who have access to both spot and futures marketshave been buying the spot and selling the futures, arbitragingthe two prices, said Michael Moro, chief executive officer atGenesis Global Trading, which provides over-the-counter digitalcurrency trading for institutional investors.The cryptocurrency has rocketed 150% since early May, alongwith big rises in other smaller digital currencies such asEthereum's ether and Ripple's XRP ."It should be noted that this a very different market todaythan it was in 2017," said Moro.
"2017 saw an overwhelming number of ICOs (initial coinofferings), which was very distracting. 2019 has lessdistractions. It's also a different space because the CMEbitcoin futures product wasn't available until December 2017."ICOs refer to a fundraising scheme that bypasses banks andventure capital firms and involves startups creating their owntokens and selling them to the public.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^GRAPHIC-Bitcoin hits highest in nearly 18 months ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Olga Cotaga in London and GertrudeChavez-Dreyfuss in New YorkEditing by Larry King and Matthew Lewis)
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