Bitcoin Rockets Past $8,000 as Value Investors Swoop In !
This week, the price of bitcoin exploded by more than 16% in a 30-minute window as value investors swooped in to buy the low-priced cryptocurrency.
The price gains reflect a positive change in momentum following a difficult first quarter for cryptocurrency investors. Last week, bitcoin hit a low of nearly $6,600 — down nearly 70% from its all-time high of $20,000 in December.
However, it now appears that the tide is turning as professional investors begin taking their seats at the table and institutional investment appears to be ramping up.
In the past few weeks, several deep-pocketed investors have begun investing in cryptocurrency, including George Soros, the fund that manages money for the Rockefeller family, and other well-known names.
Apart from the low price, institutional investors appear to be motivated by the technological innovation happening with cryptocurrencies.
Bitcoin (and cryptocurrency in general) is currently undergoing an important evolution from an unregulated, get-rich-quick casino game into a useful, reliable and powerful tool for facilitating trade and commerce.
With the implementation of new capabilities like the Lightning Network only months away, bitcoin could be poised for a massive run-up.
We can expect the usefulness of bitcoin to increase as it becomes a standard part of investor portfolios.
Although cryptocurrency had a challenging first quarter the price of bitcoin (and other cryptocurrencies) might rise as technological innovation drives new investments from institutional investors.