Bitcoin is now worth $10,000 starting Tuesday morning, trading close to $10,030 per coin as of 10:00 a.m. Eastern. It had its best seven days ever so far last week jumping from $8,000 to $9,000 Sunday then coming up to this point. “So far” because we do not know what could happen next.
Many hoped to see that price mark by end of the year but Bitcoin has come to that point too early before the year closes. So is this jump anything to lean on?
There is no doubt that a lot of demand is coming from new buyers placing orders. For instance, it is estimating that roughly 100,000 people set up new Coinbase accounts in the two days between Nov. 22 and Nov. 24.
Some people feel that the price jumps have something to do with announcements by CBOE and CME to be the first companies to offer access to Bitcoin through a traditional, regulated exchange. It is possible that many people will want to get in with expectations that the changes will push the prices further up. The next question of reason would be whether these can render real benefits.
There is no doubt that prices would continue to rise if the futures contracts, once launched, deliver their promise and encourage more people to get in crypto dealings — hence pushing demand higher. It is hoping that futures options will exist. There are still many institutional investors who fear cryptocurrencies for their volatility so it is easy to make that connection.
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After all, Bitcoin and other cryptocurrencies are away from mass adoption so there is lots of ground to cover. So assuming Bitcoin was mainly rising due to this, it would be hard to see a huge fall unless these companies fail to deliver their promise or get out of it.
What if this was not the cause for the price increase?
Others like analyst Neil Wilson call it a bubble that will soon burst, that its prices fluctuates too much and that Bitcoin has no intrinsic usefulness like commodities such as oil, corn or even gold. Some banks have been calling for increased regulation and extensive crackdowns in future could cause major falls in prices.
Still on price fluctuation, the price jumps for Bitcoin within the last month. In other words, the change in price appears to be very sensitive to what’s going on. The same could happen to quickly affect prices negatively. So, on the other hand, there are very good reasons for caution for those buying at this time.
Buying when prices are near all-time high makes it harder to maximize prices. Later for those looking to get profits in the shortest time possible. In that case, one could wait until the next dip to buy or just buy small amounts.
But it is not hard to see that the highest price for Bitcoin in the long run. As it will not be $10,000 given long term estimates by experts. Thus, for those hoping to stay in it for long.