Bitcoin catapulted past $7,400 on Friday morning, rising almost 6% and breaking its previous record the day before of almost $7,000.
The world’s largest cryptocurrency by market value has seen a steady bull trend since Wednesday when the Chicago Mercantile Exchange, the world’s largest derivatives trading house by volume, announced that they will launch trading for Bitcoin futures, before the end of this year.
Analysts believe more institutional investors could potentially warm up to the digital token after Wednesday’s announcement.
Charles Hayter, Ceo of Crypto Compare told CNBC in an email:
“This is bitcoin crossing the divide from the wild west of finance to the mainstream. Futures from an incumbent exchange bring bitcoin and cryptocurrencies into the regulatory fold. This allows more complex financial products to be created and will eventually open the doors to institutional money.”
This skyrocketed movement following CME’s press release also saw the total value of all of all cryptocurrencies climb to over $200 billion, a new record high. The market cap of Bitcoin, being the most valued cryptocurrency by a wide margin, takes up most of the overall value sitting just at $124 billion.
The price of Bitcoin has risen 640 percent since the beginning of 2017.
Amazon Making Crypto Moves
CNBC reported on Wednesday of this week that Amazon, the e-commerce giant, secured three new domain names in relation to cryptocurrency.
The three new domain names they bought were: amazonethereum.com, amazoncryptocurrency.com, and amazoncryptocurrencies.com.
Amazon already owned the domain name of amazonbitcoin.com but the VP of Amazon Pay, Patrick Gauthier, told CNBC when they inquired about this very thing last month, that Amazon has no plans on accepting cryptocurrency, as there is not any current demand.
As for the buying of the domain names currently, it’s likely due to them just securing the sites to protect their brand name as cryptocurrency continues to grow. On many occasions companies buy various domains surrounded by their name to secure their brand. However, with how competitive Amazon has become on crushing their opponents, their shift into the cryptocurrency space is inevitable. Bitcoin has a higher market cap than major companies like Nike and American Express. As more and more businesses start accepting Bitcoin as well as other digital currencies, their hand will be forced in order to keep their monstrous market share intact.
Bitcoin is being faced with another hard “fork” in its blockchain scheduled to occur later this month.
Currently, its investors and miners, volunteers who process the transactions and add them to the blockchain, are currently split on the movement of the asset.
The mining of the Bitcoin blockchain is a long procedure and a group of developers is brainstorming ways to speed up the mining process.
Bitcoin has already endured two forks earlier this year, and new cryptocurrencies emerged because of them.
Bitcoin Cash was created in August and just last month, another hard fork created Bitcoin Gold.
Hot and Cold
There have been a number of critics recently that have expressed their doubts on cryptocurrency.
On Thursday during a press conference, the New York Times reported that Tidjane Thiam, the CEO of Credit Suisse, stated that bitcoin was the “very definition of a bubble.” Credit Suisse, happens to be the second largest bank in Switzerland.
In a note this morning, Oliver White, an economist at Fathom Financial Consulting, stated that as an asset, Bitcoin was “intrinsically worthless.”
“Bitcoin fans will doubtless argue that it’s no different from fiat money in this respect. But that’s to do a disservice to notes and coin, in our view. Notes and coin have government backing,” White states.
On the other hand, Business Insider released a video on October 19th interviewing one of Wall Street’s top strategist on his predictions of Bitcoin. Tom Lee, Co-Founder of FundStrat Global Advisor, described in this interview his different methodologies in valuing Bitcoin. Lee has over 25 years experience in Wall Street equity research and every year since 1998, has been top-ranked by Institutional Investor. He projected Bitcoin’s value by the middle of 2018 to reach $6,000 but due to recent events, it has far surpassed his projected numbers. His long-term projection was bitcoin would reach $25,000 by 2020.
You can view the full interview below:
Featured Image: depositphotos/spaxiax