Bitcoin is now officially trading at above $10,000 in many mainstream exchanges after missing the mark whole day yesterday amidst huge speculation. According to CoinMarketCap, on Monday, missing after reaching a high of $9,9731.51, at 09:00 UTC on November 27.
But it started trading for U.S. $10k yesterday in several Korean crypto exchanges. Its journey in the week has been as follows: $8,000 over the past one week and over $9,000 in the weekend.
The volume grew to about $5.7 billion in 24 hours with 16,705,962 of bitcoins in supply. But what next after the 10k cap?
The news could be exciting but many do think that this is not the end. It is never too early to hold. As Bitcoin went so close to the 10k mark.
Thomas France, a multi-year veteran of the industry and co-founder of the Ledger wallet told CoinDesk that Bitcoin’s market cap is not yet its true potential suggesting it could rise more. “I see the global market cap of crypto as very, very small compared to its true potential,” France said.
Jeremy Allaire, founder of bitcoin broker and blockchain payments startup circle sees it as a signal for more institutional investment in cryptocurrencies.
“It certainly feels like we are seeing a decisive shift from the early adopter phase of digital currency into the mainstream phase.”
Author and investor William Mougayar told CoinDesk that the growth is expected given its positioning as an entry point for many investors into cryptocurrencies. He says the interest could spread into an increasingly diverse market.
“Bitcoin has had an incredible momentum that is both psychological and technical. This might be the tipping point for mainstream adoption”.
The point about more diversity was echoed by Ian Bezek. An associate analyst for Value Investor’s Edge who previously worked for Kerrisdale, a New York activist hedge fund. Bezek has been skeptical about the rallying by Bitcoin. Futures contracts according to CME are expecting to bring more volatility and help many institutional investors participate in the markets.
Guy Corem, a long-time bitcoin mining company CEO and the founder of a new alternative cryptocurrency startup DAGLabs. Thus,it is about the new rally saying it shows “clear demand” for Bitcoin from new buyers seeking to allocate capital. But the 900 percent increase on the year could trigger increasing scrutiny of Bitcoin’s markets and practices.
He says this could cause cryptocurrencies being cut off from accessing U.S. dollars. Thus, other fiats that help many others get on-board of crypto. A few are still skeptical about increase in prices.
Arthur Hayes, founder of bitcoin derivatives platform BitMEX does expect the price to fall by end of the year. He says the price barrier is likely to be significant for traders. BTC VIX, organizer of the bitcoin trading forum Whale Club also believes that this is just a bubble.
Obviously, the rise in Bitcoin prices will mean rise for other cryptocurrencies. Since few people may identify other assets to assess the market. It has already been reporting that Ethereum is working on a hedge fund.
Banca IM released last week, a whitepaper about how ether smart contract could be using for evaluating default risk. The firm believes the blockchain can boost transparency in the derivatives market and conceive the future of the quadrillion-dollar derivatives market.