In all seriousness, Bitcoin has had a wild ride. Yesterday the price crossed the $ 8,000 mark for the first time and, as usual when it hits a milestone, it is trading solidly above $ 8,250.
Here’s a quick recap of what’s been going on in the bitcoin world in recent weeks.
On November 2, the price of Bitcoin broke the $ 7,000 mark for the first time, fueled by demand ahead of the Segwit2x rigid fork that was due to take place a few days ago. Anyone who held a bitcoin before the fork would receive an equal amount of the forked coin, which some have seen as free money.
When the hard fork was canceled on November 10, the price dropped to $ 5,800 as people put their money back into other cryptocurrencies. This sudden drop also coincided with a very strange move in the price of bitcoin cash (BCH) which saw the price and the hash rise for around 24 hours, temporarily making it the second most valuable coin and the coin with the more hash exceeding bitcoin).
Bitcoin just exceeded $ 8,250
The price of Bitcoin over the past month – from coinmarketcap.com
Anyway, now that the drama has passed, the price is once again steadily rising and is above $ 8,000. So what is causing this?
Even though I made this argument when he spent $ 5,000 in early October, I still believe that institutional interest is the main cause of this prolonged rallying.
More than 100 cryptocurrency-focused hedge funds have been established in the past year, allowing large amounts of fiat to be converted into Bitcoin and other cryptocurrencies. Even old-school hedge funds and investment institutions are stepping in, as long as there are services out there that allow them to do so safely.
And these services are coming. Last week, Coinbase announced a secure storage service for $ 10 million or more in cryptocurrency for institutional investors. Additionally, the CME Group will launch the very first regulated bitcoin futures product on December 10. These two offers will facilitate the entry into the market of large diversified investment vehicles.
So what’s next? No one knows, but at this point it looks like $ 10,000 before the end of the year is possible. Of course, it’s just as likely that the price will drop, as many say we’re due for a correction.