Bitcoin made history earlier today when it hit the $2000 mark on exchanges. After starting the year at $1000, the price more than doubled in this year alone. Bitcoin hit a peak of $2025 earlier today, setting a brand new all time high.
Last week, the currency stalled at around the $1700 level after the market bounced back and forth between support and resistance. However, as the new week began, the bulls took over and boosted the price to new heights.
Some reasons why the price is exhibiting such momentum is due to the obvious growing interest of investors. Among the political turmoil caused by the Trump administration, along with growing adoption in Japan, it is evident Bitcoin is exhibiting the benefit of these events.
Furthermore, the negative forces that were affecting the market earlier this week such as the scaling debate and the impending SEC decision, seem to have been forgotten. While Bitcoin is suffering from major transaction backlog, that fact doesn’t seem to be discouraging investors into buying into the currency. In fact, it seems that the high fees only make Bitcoin more attractive because it makes the cryptocurrency look more exclusive and luxurious. While that may not necessarily be a positive thing, the price doesn’t lie.
Moreover, the upcoming SEC decision which will decide on the Winklevoss ETF application petition for review, is seemingly irrelevant to the market. While the first time the SEC denied the Bitcoin ETF application the price dove over $200 it seems that this time it will be different.
Mati Greenspan, Senior Market Analyst at eToro said:
“The $2,000 mark is a historical moment for Bitcoin. Landmark moments keep happening – the value jumped $500 in just two weeks. Bitcoin is gaining some serious momentum among investors on our platform, with 88% of Bitcoin traders still buying the asset.”
Assuming the buying volume remains steady, there is no reason why Bitcoin’s price won’t keep on rising. Furthermore, if the price rises to roughly $2900, we may see Bitcoin’s first bailout – MtGox. That’s right, if the price rises enough, MtGox’s 200,000 coins might just be worth enough to repay all of its creditors.