Bitcoin saw a 47% increase from its low of $5500 on November 12th to the high it reached today of $8121.
- First: November 12: Bitcoin falls to low of $5500.
- Second: November 19: Bitcoin breaks the $8000 mark.
- Third: November 20: Sets new record of $8121.56.
Speculation was in favor of this increase, as investors take an increasing interest in cryptocurrency. Bitcoin is incredibly volatile as an asset and the last few months alone have seen massive dips and rises in its value. It was only last year that its software developer called it a “failed experiment” and sold all of his coins. This year, Forbes.com likened it to “tulip mania” and famed financial analyst Gary Shilling warned investors to stay away from anything to do with this “black box”.
The fall in the price of bitcoin came after a there was a proposal of an upgrade to its network. SegWit2x, was the upgrade but then became canceled. This upgrade was scheduled for November 16th. It would have improved transaction speeds. This was an increasing cause for concern as time has seen marked decreases in transaction time.
However, the upswing quickly followed along with the speculation of pending futures product launches, with one by CME Group expected sometime around the second week of December. Japan is still looking favorably on bitcoin transactions becoming more commonplace and it’s looking more likely than ever that Wall Street will soon enter into the cryptocurrency marketplace. Although the scheduled upgrade canceled, it expects to take place soon, which also could have played a role in this recent uptick.
This article is third party analysis. It does not constitute any financial advice, which can only be by a certified financial adviser.