Looks like Bitcoin is on steroids. Following ten times value hike since last year, the Bitcoin saga reached another milestone in the form of its value skyrocketing over $7,000 on Thursday. Last few months have been going exceptionally well for Bitcoin investors with its value doubling over the past seven weeks. Bitstamp exchange, a Luxembourg-based trading platform reported Bitcoin being transacted at $7,354.10 before closing at $7,030 by 16:30 GMT on Thursday signifying a day’s gain of 4%.
“From what we can identify, the only reason today to buy or sell bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble,” said Tidjane Thiam, the Chief Executive of Credit Suisse on Thursday while expressing his concerns about Bitcoin being a momentary bubble which would burst eventually.
Why Bitcoin Price is Increasing?
Various factors came together to bring upon this roller coaster ride which have been described in brief below:
- ->The price rally of Bitcoin received positive inertia in the form of an announcement made by derivatives exchange operator Chicago Mercantile Exchange (CME) Group to launch Bitcoin Futures for accentuating the spread of Bitcoins in derivatives market and legitimizing the same.
- ->Amazon Inc. registered three cryptocurrency-related domain names such as amazonethereum.com (and more ) and is also rumoured to be soon starting off with cryptocurrency acceptance over its transactional window.
- ->Emergence of fresh new cryptocurrency forms and hard forks are expected to increase the transactional speed and impart maturity to the network. For example, November’s Segwit2x is expected to ease network congestion by increasing block size.
- ->Bloomberg, one of the biggest financial news provider recently termed Bitcoin as legit which created positive sentiminets for investors.
- ->Jerome Jay Powell, who is expected to be choosen as the next US Fed Chairman says he is not against Bitcoin. Again setting up positive sentiments for the Bitcoin Market.
“The move by such a well-known, established exchange throws open the doors for institutions to get into Bitcoin. Still, traditional investors will remain cautious and will not rush.” said Swissquote analyst Arnaud Masset which is a brokerage firm offering bitcoin trading facility to retail clients.
Thursday’s price jump hiked up the market cap or aggregate value of Bitcoin to more than $122 Billion. The aggregate market cap of all cryptocurrencies toppled over $194 billion which is greater than the combined market values of Morgan Stanley and Goldman Sachs.
“This has been another incredibly bullish week for the cryptocurrency, with the visible upside attracting investors from all directions. It must be kept in mind that bitcoin’s exponential gains are not only phenomenal, but (also) somewhat frightening.” stated Lukman Otunuga, a research analyst at brokerage firm FXTM.
However, investors need to take note of the fact that a proposal of registering Bitcoin ETF’s Commission earlier this year was denied by Securities and Exchange who termed the same as being liable of having “fundamental flaws” thus making it a “dangerous asset class to force into an exchange traded structure.” These flaws included oversized exposure to trading, price volatility, shallow trading volumes, low liquidity in countries suffering from weak regulatory oversight.
Other Important Bitcoin News
The world is going gaga over Bitcoin prices Crossing $7000. But what more crazier fact is that Bitcoin in Zimbabwe is trading around $12,500 due to high demand of Bitcoins.
Chinese Cryptocurrency Exchanges to launch P2P trading platforms. Huobi had already launch the P2P platform back in July called Huobi pro. OkCoin, another biggest Chinese cryptocurrency exchange will launch it’s P2P trading platform called OKEx accepting a wide range of fiat currencies including CNY.
SegWit 2x Bitcoin Hard Fork is scheduled to take place in less than 2 weeks. International Bitcoin Communities are already rejecting the Bitcoin SegWit2X proposal.
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