How Japanese rush made Bitcoin reach USD 4000
Aug 14, 2017 Posted / 2921 Views
The digital currency Bitcoin jumped to a new record of high above $4000,which has hit an all-time high, on saturday, raised by strong Japanese demand, is on its way to increasing its value by four times of this year. The crypto currency is up about 40 percent in August alone. Bitcoin's market value is approximately $64 billion, out of which, up about $10 billion in the last week. Bitcoin traded for nearly 46 percent of global trade volume, in Japanese Yen , and its trade accounted for about 25 percent of its global trade volume, in US Dollar according to Crypto Compare. Chinese yuan and South Korean global trade volume accounted for about 12 percent each. According to CNBC, the price of the digital currency Bitcoin has passed the $4,000 mark on Aug 12 2017, because of the strong demand from Japan.The rise geared up its speed in the last week, reflecting its major high climb between a global sell off in stocks and bonds. Due to the increasing fear about North Korea's nuclear warning have made investors gathering to a safe and alternative investments.Meanwhile, the trading of Bitcoin in Japanese yen has accounted for almost 46 percent of total trade volume worldwide. The trading of Bitcoin in US Dollar traded for around 25 percent, while the trading of Bitcoin in South Korean won and Chinese Yuan accounted for approximately 12 percent each.The tense situation has prompted investors to flock to perceived safe investments and alternative assets.
Brian Kelly, a CNBC contributor and head of BKCM, said in an email that "Bitcoin is benefitting from geopolitical tensions like trading in Japan and Korea has increased significantly over the last few months". He also credited price gains to investors buying back Bitcoins after the Aug 1 hard fork and major interest from the Russian government. Analysts have also noticed an increased interests by investors, particularly from institutional investors, after Bitcoin profitably survived an Aug 1 major hard forking into Bitcoin and Bitcoin Cash.
This week, Fidelity, a multinational financial services corporation has launched a feature to let their customers to view their Coinbase Bitcoin assets. The currency also got a boost up from Goldman Sachs, which said it is difficult for Institutional investors to disregard cryptocurrencies like Bitcoin, in a report released this week. Bitcoin's future is still vague. The digital currency could potentially again go under a forking in November, when the second phase of an advanced scheme called Segregated Witness will be implemented. Bitcoin's derived, Bitcoin Cash,market changed a little near $323, according to CoinMarketCap. The cryptocurrency was trading below $3,700, some 24 hours ago. About an hour ago it rise progressed to $4,000 and has no signs of ceasing. Bitcoin's value now is trading around $4,135.00. From a reference point, Bitcoin hit an all-time high as it passed $3,000 for the first time just a week ago. For the first time since the Cryptocurrency was created in January 2009, the continuing soar in the prices of Bitcoins has seen it jumped up to over $4,000. The cryptocurrency has traded around as high as $4,000, up by seven percent from its earlier high rise of $3,941 and currently trades around at $4,184 as of press time.
According to analysts, the excellent performance of Bitcoin in the market is also partly due to the digital currency’s ability to survive its split on Aug. 1, 2017, which saw the launch of the new digital currency Bitcoin Cash.The recent hard fork has resulted in the increased interest of investors, particularly institutional investors, in Bitcoin. Few weeks ago, Bitcoin went through a hard fork, and came out effectively safe. A bitcoin derivative called Bitcoin Cash was created, but it has not got a lot of attention than most people estimated. Bitcoin planned and arranged with SegWit, which is a code adjustment process that fixes the manipulability issues and frees up space in blocks, allowing space for more transactions to be stored in each one of the block, a few days later after the hard fork.
Bitcoin’s latest record high is particularly prominent given that market value for other cryptocurrencies, including other cryptocurrencies such as Ethereum and Litecoin, were not that great in recent days. This difference in the market values is in fact a good thing, as it indicates that the cryptocurrency investors are making firm choices between the competing options. Bitcoin’s essentials have made major development in recent weeks, and Segwit2x, which is a long-awaited and controversial software upgrade, is on its way to implementation. Segwit2x will make Bitcoin more functional for individual transactions and will serve as a financial backbone for other derived services. So while there is surely a plenty of money over flowing into Bitcoins, there is also more than just craze behind investors continued expectancies in the market. Thanks to the growing Japanese demand for Bitcoins, the Bitcoin market is fueling up with great speed which is adding to growth of profits for the investors.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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