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The price of bitcoin hit the $ 8,000 mark on Friday morning (or Thursday night, depending on your time zone), allowing the flagship cryptocurrency to check another step in its to-do list before it reaches a five-digit territory.
Bitcoin price reaches $ 8,000
A few days ago, the price of bitcoin had been less than $ 6,000, but a mid-week rally brought bitcoin back to its pre-dip level and finally propelled it to a new historical high. $ 8,040 on Bitfinex.
Currently, the price of bitcoin is trading at a global average of $ 7,741, which translates into a market capitalization of $ 129.2 billion.
3 factors behind the bitcoin rally
While a multitude of factors contribute to the price movement of bitcoin, three are the main drivers of the current rally:
1. The early entry of Wall Street into the markets
Since the US derivatives trading company CME announced that it would add bitcoin futures to its product offering, analysts have counted the days up to $ 200,000. Wall Street makes its first major entry into the cryptocurrency ecosystem. Anecdotal evidence indicates that prominent institutional investors are watching the markets with interest – enough interest for Coinbase to launch a cryptocurrency custodial service specifically for institutional investors with more than $ 10 million worth Cryptographic assets.
In connection with this, Wall Street investors are increasingly optimistic about publicly traded companies entering the bitcoin or blockchain space. The Square payment processor, for example, has received a significant increase in the price of its stock after deploying a Bitcoin pilot program from a limited number of users of its Square Cash app.
Source: Google
2. Atomic exchange succeeded in lightning
Although less likely to make its way into the mainstream press, another factor influencing the gathering of bitcoin is the success of the first off-line atomic exchange. Made using Lightning network technology, the developers of Lightning Labs exchanged testnet bitcoin against testnet litecoin with confidence and without leaving the transaction in the blockchain. Once the flash network reaches the mainnet implementation, this feature will enable the creation of decentralized cryptocurrency exchanges.
3. SegWit2x
Finally, some analysts believe that the price of bitcoin has gone up slightly due to the fact that a minority percentage of miners continued to report SegWit2x even though the most prominent supporters of the fork had asked for its cancellation . Spencer Bogart, head of research at Blockchain Capital, told Bloomberg Quint that he thought “some assets are being transferred from other crypto-assets to bitcoin to make sure they receive parts on both sides of the fork “in case perform as expected. However, the fork did not occur – or has not yet occurred – and the knots that are compatible with the forks remain locked at block 494782.
Image from Shutterstock.