Bitcoin achieved yet another milestone further affirming its credentials as the most popular and volatile cryptocurrency in the world. Its price rose to record highs of $14,000 after beginning the year at less than $1000. The surge brings bitcoin market capitalization to more than $217 billion after a 1,600% surge for the year.
The recent rally follows an increase in institutional funding as most of them take up positions after missing out on the initial rally. Crypto hedge fund manager, Alex Sunnarborg, attributes the recent rally to the fear-of-missing-out, as longtime market observers and new investors jostle for positions.
Trading volume has also increased in the recent past as South Korean exchanges continue to trade well above the rest of the market.
Futures Market Talk Impact
The cryptocurrency remains well positioned for more gains, ahead of its debut in Future products next week. The futures market is poised to give deep-pocketed investors who had previously been barred from the market, an opportunity to play a role in the rally.
The Chicago Mercantile Exchange’s is set to launch Bitcoin futures on December 18 as Chicago Board options Exchange prepares to launch its own on, on December 10. NASDAQ is looking at introducing Bitcoin Futures sometime next year.
Bitcoin uptrend is not expected to cool anytime soon as bullish investors try to get in, before institutional investors find a way of driving the digital currency even higher. There is already talk that a Bitcoin exchange trade-fund could be in the offing as more investors enter into bitcoin futures contract.
“The idea is futures will add ETFs which will bring institutional money and further demand,” says Charles Hayter, CEO of CryptoCompare.
Fears that once rocked the popular cryptocurrency have significantly dropped if sentiments by institutional investors who had been on the fence is anything to go by. Bitcoin’s hard forks that upgrade the cryptocurrency underlying software were a point of concern as it was feared they would divide the currencies support base.
Contrary to initial fears, forks have all but strengthened bitcoin’s support base. This is because each fork has always resulted in bitcoin users receiving an equal number of the new cryptocurrency in addition to their siting holdings. For instance, the hard fork that created bitcoin cash resulted in users receiving one bitcoin worth over $500.
Given that more hard forks are expected in future, some investors believe the cryptocurrency is destined to continue rising. However, there are those that are still on the fence given the many uncertainties at hand.
Wells Fargo, while in support of the underlying technology supporting bitcoin, remains skeptical about the crypto currency’s long-term future. The financial institution remains wary of the assets security as well as volatility and regulation that might come into being.
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Image courtesy of Chad Horwedel via Flickr
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Blockchain technology outshines Bitcoin and Gold during global pandemic
As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.
However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world.
Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.
What is blockchain technology?
Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see.
Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).
Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…