Itâ€™s happened again, folks. Another major jump for bitcoin is in the books, and this time, the currency is just shy of trading at the $10,000 mark.
Bitcoin Explodes in Price Again
It seems bitcoin has had an extraordinary week when one really considers the circumstances of its present price journey. The currency has managed to regain all its losses from September and October in just a matter of days. It fell from $9,500 in late September when Bakkt - the institutional crypto trading platform owned by the Intercontinental Exchange (ICE) - failed to perform. It then fell again when Mark Zuckerberg was ready to take the stand before Congress to discuss Libra.
It has been one ugly drop after another over the past 30 days, yet the currency is showing itself to be a resilient little bugger. There have been a few rises here and there, but nothing like what enthusiasts have witnessed over the past 48 hours. The currency experienced the Mark Zuckerberg-related drop just last Wednesday. Weâ€™re talking approximately four days ago… and look how fast itâ€™s recovered.
Bitcoin is now trading at an even higher position than where it stood during Bakktâ€™s dismal debut. Itâ€™s $200 higher and is showing that it can withstand just about any blow.
There are likely a couple reasons for the coinâ€™s sudden explosion in price. For one thing, Chinese president Xi Jinping has commented that blockchain is a revolutionary technology; one thatâ€™s likely to bring the world of finance to new heights and one that heâ€™s also very excited about personally. Heâ€™s commented that the country of China has a lot of plans for blockchain in the coming months, from decentralized finance to new startups, and heâ€™s looking forward to seeing everything come to fruition.
But thereâ€™s another big reason as to why bitcoin is doing so well. Interesting that when Bakkt was doing poorly, the currency fell to one of its lowest points in months, but now that the platform has managed to pick itself up, bitcoin is traversing the “golden plains” of finance. It has been reported that trading on Bakkt has exploded over the past few days, with bitcoin futures contracts even reaching the $1 billion mark.
Right as Bakkt Regains Its Strength…
If this is true, it means that institutional traders have a real soft spot for crypto in their hearts. Many professional traders have learned to see bitcoin and its altcoin cousins as legit trading tools that one can appreciate alongside products like gold and even standard fiat.
With all this trading, weâ€™re also likely to see an increase in retailers accepting BTC as a means of payment, which is the whole other side of Bakkt that has yet to be fully explored. Will we soon be able to buy cups of coffee with bitcoin? Only time will tell.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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