According to bitfinex.com, the largest bitcoin trading platform, the Bitcoin value is currently at 9,126 USD (26th November 2016). The strong bull of the digital currency was a result of a giant head fake pulled recently by Bitcoin. A head fake in the financial markets is when a market seems to be moving in one direction, instead it ends up moving in the opposite direction.
Recap of Bitcoin value in recent past
Early November, SegWit2x hard fork got cancelled due to lack of back up from the community. This resulted in an early spike of 7,200 USD to 7,800 USD. However, the upward trend was not always the case. When Bitcoin Cash came into to the market and quadrupled in value from 600 USD to 2,600 USD. The value of Bitcoin went down to 5,500 USD during this period. On 13th November 2017, the blockchain.info website indicated more than 141,000 pending transactions in the Bitcoin backlog. These unconfirmed transactions and their fees keep on increasing constantly.
“Lightning Network”, the scalability solution for Bitcoin will take more time to implement properly as well.
Good news for Bitcoin
The users mining for Bitcoin Cash turned their heads back towards Bitcoin. This was a result of Bitcoin Cash value going down rapidly in the past couple of months. As Bitcoin values increases, more are investing in Bitcoin now.
UK hedge fund, Man Group plans to trade in Bitcoin on the CME Group futures market. The company owns 103.5 billion USD in funds under management.
The famous payment app Square saw a 1 billion USD market capitalization increase from 15 billion USD to 16 billion USD as a result of the following announcement;
We’re always listening to our customers and they show interest 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 are eager to learn more here.
The Coinbase Custody service expected to launch in 2018, is targeting hedge funds ready to invest in cryptocurrencies. This service will act as a Bitcoin storage service as the Coinbase platform announces;
Over 100 hedge funds 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. By some estimates there is 10 billion USD of institutional money waiting on the sidelines to invest in digital currency today. 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.
More fluctuations in near future
According to Bitcoin technical analysts, there is a possibility for more fluctuations in the coming months. The price going upwards can result in a parabolic graph of the Bitcoin value fluctuation. The investors who received Bitcoin Cash as a result of the fork on 1st August 2017, will see the value of Bitcoin even higher than it truly is in the market.