Bitcoin skyrockets to $4,000 level during the weekend just days after the hard fork. Experts and analysts speculate several reasons why this happened.
The Bitcoin price skyrocketed to over $4,000 in less than two weeks after the hard fork on Aug. 1. The said spike caused excitement in the Bitcoin community, especially when the cryptocurrency hit a high of $4,225 on early Sunday.
Some users believe this massive Bitcoin price increase may have been caused by the tension between the US and North Korea, as well as other factors. Whatever these factors are, however, do give Bitcoin markets the extra push they need.
Making a new price record at over $4,000
It was only a few days back when Bitcoin impressed naysayers with its $3,000 trading price. And from Aug. 7 to 13, the cryptocurrency saw a steady rise in its value. There were some occasional dips in the price, though, just like the case on Aug. 9 when the Bitcoin price dipped by $100 to level at $3,290. Another dip was recorded yesterday, pushing Bitcoin out of the $4,000 level, but it was not long before the crypto currency recovered.
Cryptocurrency analyst Max Keiser from the RT’s Keiser predicted that Bitcoin could hit $5,000 before year 2017 ends. According to him, there are certain factors that can push the price of Bitcoin even further up. With the movement of the popular cryptocurrency, it is not hard to imagine it can cover that much ground from $4,000 to $5,000 at some point before the Holidays.
Meanwhile, Bitcoin casino players who are thinking of cashing their chips or bankroll at their favorite exchange may want to hold on to their Bitcoin. The possibility of a price increase is high after the planned hard fork at the start of this month. As Keiser also noted, there are other reasons why Bitcoin has a good chance of breaking $5,000 as well.
On the other hand, there is still a chance that the price could go down below $4,000. Cashing out while the price is still this high is a safe choice for anyone who still has their bankroll at any Bitcoin casino.
Price increase factors
The most important factor to the current upward swing of Bitcoin price is the SegWit activation last Aug. 1. This event leads to the creation of a new cryptocurrency called Bitcoin Cash.
Many believe the support was going to split between the classic and new Bitcoin. This split between the communities would result in the decline of Bitcoin’s value. Fortunately, the Bitcoin network was not entirely affected by the fork. Instead, it is currently doing better now, thanks to the upgrade of its protocol after the fork.
Because of this factor, many investors and traders are gaining new confidence in the improved Bitcoin. This resulted in a bullish movement as of late.
Another possible reason is due to the tension between the US and North Korea. The possibility of having a war or of Korea attacking the US has many people moving their money to the digital space. This scenario is similar to what happened during Brexit where people are using Bitcoin as a financial lifeboat for their assets.