Bitcoin price reached an all-time high past the $8,000 mark to $8,040 on Friday and $8,101.91 on Monday on Bitfinex cryptocurrency market. Since it comes as a buildup of events since the huge sell-off on Sunday, Nov 12. Therefore, the price fell to around $5,500.
The said dip in price resulting from the calling off of a planned fork SegWit2x. Since which was a plan for November 16. Bitcoin wanted to increase transaction speed through the fork but it would be a hard fork. Thus, that would lead to the formation of Bitcoin Classic.
The jump in price comes after spreading some rumors that some minors who supports SegWit2x upgrade. Hence still planning to proceed with the upgrade even if it suspends by developers. Usually, some surge in price is expecting ahead of Bitcoin upgrade or hard fork. Since present bitcoin holders also get a free share of the new cryptocurrency when it is distributed, after the hard fork.
Related Coverage: Bitcoin price predictions for 2018
Bitcoin has hard its good and bad times, all happening almost at a go. At such times, many related and unrelated factors will play to determine a price of a cryptocurrency.
The surge is also probably as a result of increasing interest among institutional investors to invest in Bitcoin.
With the first year-long contract agreed over the weekend by traders on the LedgerX platform, an institutional trading and clearing platform and issuer of derivatives regulated in the US, increase of Bitcoin futures is quoted severally as the reason for the increase. LedgerX said the agreement implied probability that Bitcoin price would go to above $10,000 on that agreement date.
CoinDesk reported that LedgerX has performed $16 million in bitcoin futures trades since opening on October 20.
Also, Coinbase Custody, which is a storage solution for institutions with $10 million in cryptocurrency holdings, was launched on November 16. The launch was a sign that institutions could be getting more serious about Bitcoin. Coinbase said that over $10 billion in institutional money on the sidelines of the cryptocurrency market waiting for custodial solutions. It means if the price is largely surging because of increases institutional interests. Hence, not the huge price to be a witness: surge resulting in more institutional interest will come in future.
The Chicago Mercantile Exchange will also start offering Bitcoin futures by end of the year and so open the cryptocurrency to more investors.
Square Cash earlier this week started allowing some customers to buy and sell bitcoins on its mobile Cash app.