The bitcoin price touched the $8,000 mark on Friday morning (or Thursday night, depending on your time zone), enabling the flagship cryptocurrency to check another milestone off its to-do list before it reaches five-figure territory.
Bitcoin Price Touches $8,000
Just days prior, the bitcoin price had been trading below $6,000, but a mid-week rally raised bitcoin back to its pre-dip level and ultimately vaulted it to a new all-time high of $8,040 on cryptocurrency exchange Bitfinex.
BTC Price Chart | Source: BitcoinWisdom
At present, the bitcoin price is trading at a global average of $7,741, which translates into a $129.2 billion market cap.
3 Factors Behind Bitcoin’s Rally
While a multitude of factors contribute to the movement of the bitcoin price, three stand out as primary drivers of the present rally:
- Wall Street’s Anticipated Entry Into the Markets
Ever because regulated U.S. derivatives alternate operator CME announced it'd upload bitcoin futures contracts to its product presenting, analysts were counting down the times till Wall road makes its first predominant entry into the cryptocurrency surroundings. Anecdotal evidence suggests that distinguished institutional traders are eying the markets with interest — sufficient hobby that Coinbase is launching a cryptocurrency custodial service especially focused at institutional investors with more than $10 million in crypto belongings.
associated with this is the truth that Wall road traders are increasingly more bullish on publicly-traded corporations that enter the bitcoin or blockchain area. charge processor rectangular, for example, acquired a enormous bump to its share fee after it rolled out a bitcoin pilot program to a restricted number of users of its rectangular cash app.
- Successful Lightning-Based Atomic Swap
even though less likely to make its manner into the mainstream press, some other issue influencing bitcoin’s rally is the a hit completion of the firstly-chain atomic change. executed using lightning network era, developers at Lightning Labs traded testnet bitcoin for testnet litecoin trustlessly and with out leaving a record of the transaction in either blockchain. as soon as the lightning community reaches mainnet implementation, this selection will allow the introduction of decentralized cryptocurrency exchanges.
sooner or later, some analysts trust that the bitcoin rate received a small bump because of the fact that a minority percentage of miners endured to signal for SegWit2x despite the fact that the fork’s maximum outstanding advocates had called for its cancellation. Spencer Bogart, head of research at Blockchain Capital, had told Bloomberg Quint that he believed “some capital is rotating out of other crypto-assets and into bitcoin to make sure they obtain coins on each sides of the fork” in the event that it did execute as planned. however, the fork did not occur — or at the least has now not but — and fork-like minded nodes remain caught at block 494782.