The world’s largest cryptocurrency, Bitcoin, has reached an all-time, coming very close to the $8,000 price milestone.
The digital currency surpassed $7,800 on Friday 17th November, reportedly trading at $7,990 in the early hours, UK time, according to industry specialist CoinDesk. The cryptocurrency increased by 4% in the 24 hours prior to the peak. More remarkable, however, is the turnaround from the previous weekend, when the value dropped to around $5,500, marking an incredible 45% increase from that low to the all-time high.
If the investor community decides to move out of bonds and equity and into Bitcoin, as is looking increasingly likely, it’s possible that a rise beyond the $8,000 mark could be on the cards.
The price dip came after a planned upgrade to the Bitcoin network, called SegWit2x, was called off. The upgrade would have doubled the transaction capacity of the network, and led to a hard fork, resulting in the formation of a new currency that obeys a new rule set.
Two such hard forks have occurred this year: one resulting in the formation of Bitcoin Cash; the other in Bitcoin Gold. Bitcoin’s recent high occurred after Bitcoin Cash suffered a sharp decline, dropping more than 25% in 48 hours. The majority of Bitcoin’s gains have been attributed to Bitcoin Cash’s decline.
Although the hard fork has been called off for now, there is the possibility that a small number of miners – key nodes in the Bitcoin network – could yet cause a fork.
We at Magnus Search will keep you updated on the latest cryptocurrency movements, but wish to remind prospective investors that investing in Bitcoin is highly speculative.