Amidst much speculation, Bitcoin price, the world’s most prominent cryptocurrency has finally surged over the $6000 mark. Bitcoin price recently made it’s new all-time high at $5862 . The latest turn in Bitcoin saga have touching its market cap to $100 billion line. Such valuation has imparted to Bitcoin, a position at par with blue-chip companies listed in Dow Jones Industrial Average such as United Technologies Corp having a market value of $96 billion and Caterpillar Inc. having market value of $77 billion etc.
According to Cryptocurrency Exchange Poloniex, Bitcoin price made it’s new all time high at $6180. At the time of publishing this article Bitcoin price was $5877 with a market cap of $98,058,604,756 .
Alex Sunnarborg, the founding partner of cryptocurrency fund Tetras Capital stated that, “In the last 24 hours and really the last few hours there has been a massive inflow of capital into bitcoin, significantly outweighing the amount of new money flowing into other cryptocurrencies.”
Sunnarborg also stated that Bitcoin enthusiasts are rooting for the original Bitcoin given its impending 18th November’s split termed as SegWit2x which shall be preceded by October 25 hard fork giving rise to Bitcoin gold. He added that “mining pools” i.e. major bitcoin developers are pulling out their support causing bitcoin offshoot to trade lower.
CNBC contributor Brian Kelly feels that the success story of Bitcoin is going to continue in days to come. An unscientific online survey conducted by CNBC revealed that 49% of 23118 people feel that Bitcoin will soon cross the $10,000 mark. Michael Novogratz, former Fortress hedge fund manager feels that Bitcoin price will touch $10,000 in next six to eight months.
2017 had been an eventful year for the Bitcoin sector with countries such as China and South Korea imposing ban on cryptocurrency activities. However these small blockades did not bring along much harm when viewed at a holistic level. Kenneth Rogoff, a Harvard professor of economics stated earlier this month that: “It is one thing for governments to allow small anonymous transactions with virtual currencies; indeed, this would be desirable. But it is an entirely different matter for governments to allow large-scale anonymous payments, which would make it extremely difficult to collect taxes or counter criminal activity.”
Bitcoin briefly plunged down by 8.7% before its steady recovery following rumours of increased scrutiny of U.S. regulators. In spite of being criticized by BlackRock CEO Larry Fink and JPMorgan Chase CEO Jamie Dimon, the dynamic cryptocurrency stunned haters with a 50.4% hike. Jamie pointed out, “If you’re stupid enough to buy it, you’ll pay the price someday,” during a recent panel discussion whereas Larry described Bitcoin as “an index to launder money.” Bitcoin was also recently given the tag of being “worse than casinos” by a Russian official causing a price drop to $5174 on Wednesday.
A Sneak Peek Inside The Cryptocurrency Store
Bitcoin enthusiasts are hopeful about the release of a Bitcoin ETF which can be traded in a regular stock market thus hiking up the availability of the digital asset amongst an array on investors. A similar attempt was rejected earlier this year by the U.S. Securities and Exchange Commission. Barry Silbert, a representative for Digital Currency Group revealed last week that the investment firm was currently in talks with SEC regarding the launch of its exclusive publicly traded product in spite of withdrawing its application last month from a listing. With 300000 daily bitcoin transactions, the network hashrate has crossed over nine exahash per second two time in this fiscal. Miners are earning significantly from crypto activities and some are even switching in between BCH and BTC chains. Wallet adoption has also intensified with companies such as Coinbase and Blockchain issuing more than 27.5M wallets to various bitcoin users.
Reasons Underlying The Bitcoin Price Hike
Bitcoin is trending in failing economies such as Venezuela and Zimbabwe with citizens taking the cryptocurrency route for escaping from the shackles of hyperinflation. News agencies are reporting various merchants are accepting Bitcoins in payments everything starting from services to donations. News following withdrawal of China’s ban on ICO activities has also added inertia to Bitcoin’s price hike. Beijing has also called for licensing of Bitcoin platforms under proper legal architecture rather than previously assumed means of banning it outright. Similarly, Cryptocurrency Exchanges in Unites States may be issued license for operation of Bitcoin related activities.
Also Read: Top 5 Reasons Why Bitcoin Price Is Increasing.
Jason English, the vice president of protocol marketing at Blockchain related company Sweetbridge was recently quoted as saying, “It’s an exciting time to be in cryptocurrencies today. More and more individuals and businesses are viewing bitcoin as a store of value that they should be exposed to. ”
Anticipation of upcoming hard forks could have also added positive stimulus to the Bitcoin price rise. Investors have increased their Bitcoin purchase hoping for gaining from free digital currency termed as Bitcoin Gold. The SegWit2x hard fork is also stated to increase the current block size of Bitcoin market from 1 to 2 MB.
Those who holds Bitcoin in the wallets giving them access to their private keys will be credited equal number of Bitcoin Gold. Similar to what happened in the case of Bitcoin Cash. Click here to read Exchanges And Wallets Supporting Bitcoin Gold
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