Bitcoin hits $8,000 for the first time in history, on Monday and currently trades at a slightly higher value of $8,250.
If you are a cryptocurrency enthusiast, you will probably know how the Bitcoin price has been fluctuating over the last six months.
The price shot passed $7,000 for the first time on 2nd November, thanks to the Segwit2x hard fork that was planned to occur on November 16th. Anyone that held a Bitcoin before the hard fork would receive an equal amount of the forked coin.
However, due to lack of support by crypto startups, the SegWit2x fork was called off on November 10th. The cancellation of the fork crashed down its price to $5,800 as people changed their cash back into alternative cryptocurrencies. This sudden decline coincided with the strange price movements of Bitcoin Cash (BCH). The price and hash rate of BCH spiked surprisingly high for almost 24 hours, surpassing Bitcoin and temporarily becoming the second most valued coin.
Anyways, Bitcoin price has climbed again successfully, hitting an $8k milestone.
So what’s causing these fluctuations?
While it’s really difficult to find out the exact reason, many analysts believe that a major role is being played by institutional interest (or sometimes disinterest). Over 100 cryptocurrency-focused hedge funds had been created last year, acting as a channel to convert huge amounts of fiat into it and other digital currencies.
Apart from the newly formed ones, the old hedge funds and investment firms are also getting into action. There are various services offered to these institutions that help them out in the process.
Last week, Coinbase announced a service called Coinbase Custody that will hold cryptocurrency of worth 10M or more for institutional investors. Similarly, the CME group is to launch its first-ever regulated Bitcoin Future product on December 10th. These both offerings will make things way easier for diversified investment institutions that intend to enter the market.
No one knows when and what spike will occur next to the Bitcoin price, nevertheless experts think it will likely hit $10,000 before the New Year.