Another massively successful day for bitcoin! Just over 24 hours ago the original cryptocurrency was trading below $3,700. A few hours ago it surged passed $4,000 and shows no signs of itstopping. The leading cryptocurrency is currently trading around $4,135.00. To get things into perspective, a week ago Bitcoin hit an all time high as it surged beyond $3,000 for the first time.
The chart below shows us how things have developed over the last 24 hours.
The question on many investors lips is “why now?”. It being Sunday we won’t waste too much of your time with a deep breakdown but here are a few reasons you can tell your friends during Mondays watercooler talk tomorrow.
Just over two weeks back Bitcoin went through a pretty hard fork and came out through it almost completely unscathed. A bitcoin splinter currency called Bitcoin Cash was created, but it’s still in its embryonic stages and received a lot less attention than most expected. A few days later Bitcoin began locking in SegWit, a complex code modification that fixes malleability problems and frees up space in blocks which in turn allows for more transactions to be stored in each one.
In short, it survived a civil war and also became easier to use. This becoming news has helped boost confidence in Bitcoin’s future.
Another reason is the ICO. The amount recently raised via initial coin offerings have now topped the amount raised via early stage venture capital. Only last week Filecoin raised over $180 million in only a few short hours. Many investors now have to convert fiat currency to bitcoin or other cryptocurrencies to participate in ICOs, which is of course driving up the value due to more investors getting their first try with the cryptocurrency
One other BIG reason is Wall Street seems to have developed a new obsession with bitcoin. You can’t view CNBC for more than a few minutes without seeing a leading trader or analyst give their enthusiastic opinion or feedback. Constant talk along the lines of “Bitcoin is shaping up to be the best performing investment of the year”. These confidence building statements are getting non-tech minded investors listening and investing in bitcoin and many of these will be first time bitcoin buyers.
So what next? As with any investing no one really knows. Bitcoin could crash 50% to $2,000 tomorrow or more likely spike to $5,000 but no one can say for sure. Everyone will have a different opinion. Whatever your opinion is on bitcoin, remember this. Don’t invest more than you can lose or bear to see wiped off your investment portfolio. With big gains comes big risk so be confident but wise.