$6,600: Bitcoin Price Hits New All-Time High, Factors For Recent Surge

By
Joseph Young @iamjosephyoung
2 years ago

Earlier today, on November 1, the bitcoin price achieved a new all-time high for the third time in the past week, surpassing the $6,600 mark on a global average.

Major BTC-to-USD exchanges such as Bitfinex and GDAX recorded a daily peak at $6,592, while cryptocurrency trading platforms in other major regions like Japan and South Korea recorded trades above the $6,600 mark.

Several trusted global bitcoin market data providers including BraveNewCoin revealed that bitcoin price achieved a new all-time high at $6,609 in global average, based on the price of bitcoin across the US, Japan, South Korea, Hong Kong, and Europe.

Major Factors to Recent Bitcoin Price Surge

Minor factors like the rumors surrounding the possibility of the Chinese government resuming cryptocurrency trading after the reelection of President Xi Jinping later this year, the decline in support for the SegWit2x hard fork in November, and the strong performance of the Japanese market have contributed to the price surge of bitcoin over the past six days.

Major driving factors behind the recent rally of bitcoin which led to an all-time high price at $6,609 have been the integration of bitcoin by CME–the largest options exchange in the world, not just domestically within the US–, entrance of large-scale institutional investors in the bitcoin market, and the movement of capital on “the sidelines” to bitcoin.

As highly regarded bitcoin trader and commentator IamNomad stated:

“For crypto kids confused on why CME [bitcoin futures launch by CME Group] is a big deal, this is how the ‘money on the sidelines’ you’ve heard about for years starts to enter. One big product on CME has more volume then (almost) any two bitcoin exchanges at any given time.”

The entrance of institutional and retail traders, along with their capital stored in offshore banking accounts and wealth management products (WMPs) will play a critical role in increasing the mainstream adoption of bitcoin and exponentially growing the market valuation of the currency in the long-term.

In the upcoming months, based on the performance of LedgerX, an institutional trading and clearing platform approved by the U.S. Commodity Futures Trading Commission (CFTC) to trade and clear swaps and options on digital currencies, and the planned launch of CME’s bitcoin futures exchange by the end of 2017, more of “money on the sidelines” from high profile traders will be allocated to bitcoin.

Such trend will inevitably lead to hundreds of billions of dollars being allocated into bitcoin in the upcoming years and will allow bitcoin to achieve new highs. Potentially, by early 2018, if the demand from the traditional financial industry can be sustained, the $10,000 interim target of prominent analysts like Max Keiser will be breached.

Short-Term Indicators to Observe

In the short-term, investors would likely benefit by observing the US and Japanese bitcoin exchange markets and trends around CME’s bitcoin integration, as well as bitcoin ETF proposals from organizations like Gemini (Winklevoss twins).

Featured image from Shutterstock.

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