Bitcoin is the world’s most popular cryptocurrency, and it traded below US$3,700, just 96 hours ago. The Market Price has gone past US$4,000 over the last two days with no signs of a halt. At the moment, it’s trading at about US$4,049. Bitcoin zoomed past a record US$3,000 last week and this is an indication of a rally that might not abate in the near future.
The bitcoin hard fork
The much-publicised Hard Fork finally happened a fortnight ago, and against all the odds, Bitcoin turned out none the worse. During this period, a new offshoot referred to as Bitcoin Cash (BCC) gained entrance into the market, but contrary to expectations, the market price got a roaring rally!
In a defining move, the “SegWit” code modification has turned out to remedy malleability problems, and make storage space available in individual blocks to accommodate more transactions. After the SegWit experience, the market price recovered and Bitcoin has been on a rally that is baffling
These code modifications have concomitantly bolstered confidence in the dynamism of Bitcoin. At least twenty traditional exchanges of BTC have offered support for BCC while some random others eschewed making it available to customers who showed interest. The market price dropped initially, but it is has surged on ever since in a noticeable rally.
What underpins the bitcoin rally
The bitcoin rally can be attributed to the ICO frenzy.
What was raised through initial coin offerings in the interim have surpassed sums raised in the past through early-stage venture capital. Last week, Filecoin recorded a whopping US$180 million on its debut. The ICOs initiative requires investors to exchange traditional currencies for BTC or other cryptocurrencies, which in turn could escalate exchange rates and the ruling market price.
The second reason is that Bitcoin and its market price has become a Wall Street obsession. It has become impossible to view world economic news for five minutes without the news of a Bitcoin rally setting in. Viewers have to listen to the steely opinion of an analyst or traders who have coined a “buy it” mantra around this 'wonder' innovation.
The Bitcoin futures
Those with in-depth knowledge of Bitcoin should brace for what is to come. The market price could drop by 50 percent before tomorrow or hit the US$5,000 mark in a possible rally.
Some think the increment in the market price of Bitcoin is just a fraction of what to expect while others think a fresh rally is in the offing. Whichever side you belong to, keep this advice in mind: Invest what you can part with because the cryptocurrency world like every trade, has its swings and lows.
