The Bitcoin mania is really making everyone go crazy now!! After a successful rally till $7900 earlier this month, Bitcoin entered a major correction mode with its price plunging by over 30% touching a low of $5450.50 before finally re-tracing its path back for the upward momentum. However, the downtrend sentiment was quite short-lived as now Bitcoin has surpassed all its previous records to hit a new all-time high of $8100.
It seems that with each passing day, the investor interest and confidence in Bitcoin continues to grow further. One of the great things about Bitcoin is that several professional investing institutions like Goldman Sachs, CME Group, and others have started to realize the future potential of Bitcoin and are seen taking active interest and participation. As rightly predicted by one of the Goldman Sachs analysts earlier this month, Bitcoin has convincingly managed to cross the $8000 mark.
Last week, there was a lot of confusion pertaining to the SegWit2x hard fork that was scheduled on Nov 18th and was majorly intended to increase the block size in the blockchain. Earlier this month, the very members who initially proposed for this hard fork back in May, decided to call off the plans owing to the failure of getting a unanimous consensus.
However, recently it was discovered that some miners community was still interested in the hard fork to go through but to their dismay, they could not mine till the block 494784 within the scheduled time after which the hard fork was finally confirmed to have been canceled. However, but it cannot be said that SegWit2x now won’t occur anytime in future because the major issue of 1MB limited block-size still persists which has been the absolute reason of increasing transaction costs and slower transaction speeds.
This was the time during which there was a lot of skepticism within investors but now with the air being clear, the momentum has shifted in favor of the bulls as Bitcoin price is inching to new highs. One of the other major reasons that has contributed to the Bitcoin rally so far is the initiative taken by the CME Group for cash-settled Bitcoin futures contracts to starting next month.
The cash-settled futures contract will bring a lot of liquidity in the Bitcoin markets and will allow many interested investors to participate in Bitcoin trading without actually owning them. These futures contract is also said to reduce the huge volatility currently in the Bitcoin prices and bring in more stability. Chairman of CME Group, Leo Melamed went to the extent of saying that they will be taming Bitcoins and also called Bitcoin to be the new asset class of the future.
Apart from the renowned institutional investors, there are other players from the Wall Street who are considering Bitcoins as a part of their services and testing new ways to solve several blockchain related issues. Recently, one of the largest mobile payments app – Square – is testing buying/selling of Bitcoins on some of its user accounts. Similarly, Lightning Labs unveiled a new off-chain solution for making fast and secured cross-blockchain payments which allow to instantly exchange hands between different cryptocurrencies.
The support for Bitcoin is coming from all corners and the technical indicators are suggesting a further uptrend. Few technical analysts believe that the next trigger in the Bitcoin prices can take its value to $12000 which means a 50% jump from the current price, and this could happen as early as January 2018. Currently, as per coinmarketcap.com, Bitcoin is trading at $8019.40.