3 Main Reasons for Bitcoin's Recent Growth
November 19, 2017
This Friday the Bitcoin price touched the $8.000 mark, thereby having broken one more record. Just a few days before, the Bitcoin price had been trading below % 6.000, but a mid-week jump raised Bitcoin back and as a result led it to a new record maximum in $ 8.040.
What matters here is to name three main reasons of the Bitcoin’s jump.
- Wall Street’s entry into the cryptocurrency markets
Since the CME exchange operator announced it would start offering Bitcoin futures, analysts have been counting down the days until Wall Street makes its first step into the world of cryptocurrency. Incontrovertible facts indicate that prominent institutional investors have an apparent interest that Coinbase is launching a cryptocurrency custodial service, specifically targeted at institutional investors with crypto assets of more than $10 million.
In general, it is connected with the fact that Wall Street investors are increasingly interested in the companies that use the Bitcoin technology or blockchain by their work. For instance, the payment processor Square received a considerable bump to the price of its shares after he released an experimental Square Cash program which allows the users to operate Bitcoin.
- Atomic Swap
Another factor influencing the Bitcoin growth is the successful completion of the first atomic swap. Using the network technology Lightning, the developers exchanged a test bitmok for the test Litecoin version, without leaving a record of the transaction in blockchain. As soon as the Lightning network is completely implemented, this function will fully enable the decentralization of all cryptocurrency exchanges.
Finally, some analysts consider that Bitcoin’s price has experienced a small bump due to the fact that a small percentage of miners continued to support SegWit2x, despite the fact that the fork’s prominent supporters had called for its cancellation. Spencer Bogart, head of research at Blockchain Capital, believes that “many get back their capital from other cryptocurrency assets to Bitcoin to make sure that they will receive coins on both sides of the fork”, in the event that it did execute as planned. However, the hard fork did not occur and compatible nodes remain stuck at block 494782.