Bitcoin has hit $4,000 USD on Coinbase. The new price record and psychological landmark happened at 9:40 PM EST on Saturday 12 August, 2017. Where will it go from here?
Also read: TREZOR Wallet Team: Bitcoin Cash Integration Tougher Than We Expected
Coinbase’s price hovered within $20 of the $4K mark for a brief time, and continues to tease around that level — at press time it was $4,029.
Bitcoin’s rapid rise since July’s fork jitters has stunned even the rowdy participants in cryptocurrency day trading chats. While some predicted $4,000 is just another stepping stone to $5,000 and far beyond, others cautioned there would probably be some profit-taking first.
Industry media is running out of superlatives to describe BTC price records. Indeed, even the ones we used a few months ago now seem quaint. When we look back at today from next year, will we laugh at today’s landmark too? Or lament?
FOMO May Be Hitting Bigger Investors Than Usual
FOMO, or “fear of missing out”, is a phenomenon that amplifies bull runs in any asset or investment. But BTC gains over the past year suggest FOMO may be hitting investors with much deeper pockets than before.
Fidelity’s announcement the other day, that it would let clients view cryptocurrency portfolios alongside their “official” ones, was more significant than it looked. Even though big investors are (for now) unable to offer bitcoin and cryptocurrency-based products directly, it’s clear they’re champing at the bit for the opportunity.
Even those who doubt the technology or its long-term viability must acknowledged the dollar returns. Of course, this means Bitcoin could well be in a bubble, or hype cycle. But even if so, speculators will concern themselves mainly with how long it will last.
External Factors and Bitcoin Forks
It’s possible world events are driving money towards non-traditional investments as well. Political, economic and social instability is growing across the developed world — and confidence in other asset classes such as stocks and property is wavering.
The irony is that some Bitcoin watchers have noted the 1st August hard fork didn’t solve anything definitively. The majority of mining power rallied behind the main chain, backing SegWit, and creating the impression that all is well.
In the meantime, though, “Bitcoin Cash” has retained a notable dollar value around $300 or more, signaling some confidence remains. The community must still make another hard choice about block sizes in November.
What’s your prediction? Why do you think that? Let’s hear your thoughts in the comments below.
Images via Coinbase, VideoBlocks
Note: this price update is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin or other cryptocurrencies.