Today Bitcoin smashed past the $8,000 level, hitting a high of $8,040 on Bitfinex before retreating to $7,900 at time of writing this post. Looks like Bitcoin seems to have a problem with being put down, because each time this tries to happen, it always ends up breaking through and bouncing back even stronger.
Source: Trading View
The cancellation of the SegWit2x hard fork about a week ago led to a series of events that saw the price of bitcoin plummeting from $7,800 to as low as $5,500 and bitcoin cash surging from $600 to $2,600. Many bitcoin miners abandoned bitcoin and started mining bitcoin cash leading to high increase of unconfirmed transactions (over 135,000) and a commensurate increase in transaction fees.
With Bitcoin officially abandoning SegWit2x the only near-term solution to the high transaction fee and scalability crisis and Lightning Network, Bitcoin’s long-term scaling plan still in testing and unready for implementation, things really looked bad for bitcoin.
A Flood of Good News
However, as bitcoin cash price started falling, miners switched back to Bitcoin, reducing the transaction backlog and sending bitcoin price up again. And with the new announcements made recently, Bitcoin surged even more, moving through $6,000 to $7,000 and now $8,000. So, what were these announcements?
2. Shortly after the announcement from Man Group, Payments app Square announced its full integration of Bitcoin into the payments platform. The company’s spokesperson stated:
“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We're exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we're excited to learn more here.”
Following the announcement, Square’s market capitalization swelled from15 billion to 16 billion dollars.
3. Also, just yesterday Coinbase announced Coinbase Custody, a Bitcoin storage service intended for hedge funds that are interested in investing in Bitcoin.
Brian Armstrong, Co-Founder and CEO at Coinbase stated:
“Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today. When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely.”
The announcement continues, describing the benefits of the service:
We are designing Coinbase Custody to meet the needs of institutional clients. In particular, we feel that institutional clients require: -Strict financial controls (multiple signers, audit trails, limits, etc) -Dedicated account representatives and phone support -SLAs on funds transfers -A regulated digital currency custodian -Multi-user accounts with separate permissions -Support for a wide range of digital assets and currencies -Insurance (in some cases) -And high levels of cyber and physical security
The new service is expected to launch in 2018.
Bitcoins acceptance keeps expanding rapidly on a daily basis, and Bitcoin’s technical analysts who study chart patterns to attempt and predict price moves, suggest that the cryptocurrency is about to experience a significant price move. Due to its rapid rise, analysis suggest that the price should see a pullback here at $8,000 to regroup and consolidate before pushing higher.
In a sense, the actual value of Bitcoin is higher than it appears, at least for those had Bitcoin prior to the August 1 fork and who held the resulting Bitcoin Cash they received. User csasker on the /r/BitcoinMarkets subreddit wrote:
BTG + BCH + BTC now over 9000! :D:DDD