Update on November 28th, 2017: Bitcoin price has just reached its historical all-time high by breaking the $10,000 barrier. Read more about it here.
Bitcoin is currently soaring to its all-time-high valuations as if there is no tomorrow! The most popular and celebrated cryptocurrency has been on a historic rise and most of it has been coming in just past one month. It was just 25 days back when on November 2, Bitcoin prices surged past $7000 mark soon after the announcement of Bitcoin futures contract by the CME Group. This was the major trigger following which, there has been a huge inflow of cash and liquidity in the cryptocurrency markets contributed by both institutional and retail investors alike.
After the initial surge in the first week of November and following the SegWit2x hard fork cancellation, Bitcoin prices took a severe hit touching the month low to $5627.18, according to CoinMarketCap. Later, Bitcoin was quick enough to recover from these levels and now it seems that there is no looking back until the time it touches $10,000 before 2017 ends. It’s almost an everyday saga now that Bitcoin is breaking its own previous records an inching towards new highs. There are several factors that are contributing to this second phase of the rally and several technical charts expected this rally, earlier this month.
Having consolidated for almost a week at $8200 before the latest rally, Bitcoin is now trading above $9700, just a 3% away from its $10,000 projections. Just in past 4 days, the overall market valuations have grown by a whopping $50 billion and now is currently trading at a total market cap above $300 billion, with Bitcoin alone contributing a lion’s share of $167 billion out of the total. This means that the valuations have doubled in just three months when it crossed $150 billion for the first time on August 23rd. In the past 24 hours, the Bitcoin trading volumes have also surged to an almost $6 billion and currently Bitcoin is trading at a price of $9728.97.
One of the great things is that the confidence and participation of retail investors over the past year has forced several big financial institutions to consider Bitcoin as potential investment tools. There has been a high demand for Bitcoin-based investment products in the market and we have seen many investments firms across the bond and derivates market creating lucrative Bitcoin-based investment options for investors.
Commenting on the latest rally above $9000 in past 48 hours, analysts from the trading platform – IG Group said “Bitcoin has seen another frenzy of buying as the fear of missing out trade bites even harder. There are others who see downside risks from the introduction of bitcoin futures.” Also, Brian Kelly, CEO of BKCM, in a word with CNBC said: “The move appears to be retail driven.” It seems that one the greatest shopping trends this Thanksgiving season way buying cryptocurrencies. The entire market is witnessing a bullish sign and the second most powerful cryptocurrency Ethereum too has surged close to $500 and is currently trading at $488.63 after touching its all-time high of $493.40 according to CoinMarketCap.
In spite of all the criticism from several prominent institutions from the Wall Street, Bitcoin has managed to rise above all odds. With starting of the Bitcoin futures contract in just two weeks from now, as announced by CME Group, there is all the more possibility of Bitcoin touching $10000 next month.
However, the Bitcoin trading is derivatives market is expected to bring a lot more stability in the price fluctuations thereby reducing the huge volatility that has been seen in Bitcoin prices. Also, with many new investment products like $500 million crypto-hedge launched by renowned investor Novogratz and other institutions, the coming year of 2018 will be quite interesting for investors.