Bitcoin has shot past $4,000 yet again. This gives a lot of fresh hope to the investors who have suffered for such a long time. They have been stuck in a bear market for well-over a year now and for the second weekend in a row, the price for Bitcoin has rallied. The price has jumped from around $3,900 and it has now reached $4,100. This is according to the latest prices that have come from Luxembourg’s own exchange, Bitstamp. This has helped to push the market capitalization to well over $70 billion. The market value of every currency is now over $140 billion and this is absolutely incredible news to say the least.
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So let’s take a look at the sudden price leap from Bitcoin. This comes a week after a lot of positive news and it also comes from the approach of new network upgrades. This is great and there are going to be a lot of other new advancements coming to the market as well. Of course, the price of Bitcoin has been stuck for a year now and it has been in a bear market for quite some time. Now however, the bulls are back and this is going to mean some major changes. The price of ETH has also shot up as well. It has risen by well over 6% and XRP, EOS, Litecoin and more have also made very strong gains. They have added 5% each.
The price of Bitcoin has struggled to break out of its bear market. Investors and traders are trying so hard to try and call a bottom to the market as it carries on tumbling down. The value of Bitcoin and other related cryptocurrencies have fallen by $400 billion. This happened in little less than a year and this was really devastating to the market. Of course, the Bitcoin price hit a high of $20,000 in December but ever since then it has been falling. It dropped to $3,000 per coin and this really was bad news for a lot of investors.
So far, it looks like the entire rally has been caused by a shortage in supply. This is especially the case when you look at the new ETH. The senior market analysis for the company has released a note to the clients yesterday and he has stated that the rally has interested a lot of people so far. They have been in the accumulation zone for quite some time and this latest big push might just be enough to bring the entire market out of the slump they are in right now. There are however certain technical levels that need to be shattered and broken down before this happens. The ETH market and network for example, until the beginning of this year, has been producing well over 30,000 new Ether every single day. Since the beginning of the year however they have been slowing things down gradually and now they are only producing around 13,000 a day.
The price for Bitcoin has also leaped even higher. It climbed back to the $4,000 mark and next week, Constantinople is due to launch. This is an upgrade and it will help to speed up the processing times as a whole. It is also designed to improve the way that the network monetizes data and even the way that mining rewards are used. Earlier on today, two eccentric millionaires came out to say that they expect Bitcoin to be worth well over $1 million in two years or less. He has stated that it could be in 5 years or even in a decade, but that being said, this is exciting news.
The bank wants to use the digital token to try and lower costs and they also want to try and speed up international transfers. This has been a long critic of Bitcoin and the decentralized blockchain. The announcement has been taken as an endorsement of the technology that it has to offer. The Bitcoin bulls really are confident that a large number of high-profile workings could help the price to go higher in the future. The NY Stock Exchange operator along with Starbucks, the Boston Consulting Group and even Microsoft are choosing to back a new company known as Bakkt. This will help Bitcoin to trade and it will also help it to succeed.
In October, a company called Fidelity Investments, who work by administrating well over $7.2 trillion in assets, unveiled a new business. This was known as Fidelity Digital Assets and they are going to handle the custody and even the storage of any digital assets. This could be used for Bitcoin or it could even be used to try and execute trades too.