The story of Bitcoin and the blockchain has classic elements from the best coming-of-age stories. There is an idealistic beginning — Bitcoin first emerged in 2008 with the audacity to challenge centuries-old fiat currencies, there is an obscure middle — digital assets were unheard of between 2008 to 2014 (when Ethereum entered the market) and we are currently watching Bitcoin and other cryptocurrencies come into prominence as crypto prices continue to soar this year.
Digital coins are experiencing these price surges despite the many unsettling events in the past few months, namely:
- The Bitcoin Fork
Up until a short time ago, pre-fork Bitcoin was under a shadow of speculation. One of two outcomes were being expected: a) that newly formed Bitcoin Cash would obliterate Bitcoin or, b) that Bitcoin would be further bolstered as the community would wholly reject Bitcoin Cash. However, neither outcome materialized as Bitcoin soared 21% to $4,300 (since its slump in mid-July). Bitcoin Cash, despite its bits and flashes of volatility, has stabilized to a market cap around $6 billion. Bitcoin Cash is currently the third largest digital asset, however, it remains to be seen if it will suffer the same fate as another hard-fork by-product, Ethereum Classic.
- The Ethereum Flash Crash
Many speculated that the Ethereum flash crash on June 21st, 2017 was caused by a sizeable “sell” order placed by a whale. 800 stop loss orders later, Ethereum reached a low of $0.10. Many believe that the flippening — an event when Ethereum would overthrow Bitcoin as the leading digital asset — may have halted because of this. However, Ethereum too has rebounded since June and is currently trading at $300. It’s current market cap of ~$28B makes it the second largest digital asset.
- The SEC Ruling
Last month, the SEC decided to categorize cryptocurrencies as an asset class and decreed that subsequent token generating events (TGEs) might have to be registered (if certain conditions were met). Looking outwardly, it might seem that this ruling would have stunted the growth of the digital asset community, many welcomed the regulation and hoped that the blockchain community could claw its way out of the shadows.
Despite all its shortcomings, the digital currency world has rallied to a market cap of $114 billion (as at August 17, 2017). Its all-time high was $120 billion a few weeks ago. So, what’s behind these surges?
Read the full blog post here: https://celsius.network/why-bitcoin-prices-are-rising/