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BITCOIN CROSSES THE $8,000..........Before Cascading down!

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Bitcoin just surmounted the $8,000 level, topping out at $8,020 on Bitfinex before retreating to $7,850.48 at press time. 

The market seem to be soaring of the bandwagon adoption which the currency has received since the statement by CME about trading Bitcoin futures next year.  So many hedge fund managers and institutional investors has shifted their attention on Bitcoin ever since and the effect is what we saw just before the close of Thursday.

Series of good news has followed the CME annoucement, notable among them being, the British hedge fund Man Group, with over $100 bln in funds under management, announced they will begin trading Bitcoin once CME’s futures market is launched. Immediately following this, Payments app Square announced its full integration of Bitcoin into the payments platform. The company stated:

“We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin. We're exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash App customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we're excited to learn more here.”

Square’s market capitalization swelled from $15 bln to $16 bln following the announcement, so Wall Street is apparently just as pleased as the Bitcoin community.

About a week ago, the SegWit2x hard fork was cancelled and the price immediately spiked from $7,200 to $7,800. But within the hour, the price had dropped and continued to fall further. Just a few days later, Bitcoin had sunk to a local low of $5,500, while rival Bitcoin Cash shot up from $600 to $2,600. At the time, a large number of Bitcoin miners had moved to Bitcoin Cash and the number of unconfirmed transactions soared to over 135,000. Fees increased commensurately.

Things didn’t look good. Bitcoin had just officially eschewed the only near-term solution to the scalability crisis. SegWit, which was adopted back in August, will take time to gain traction as wallet providers must include the feature and users must voluntarily begin using it. Lightning Network, Bitcoin’s long-term scaling plan, is still in testing and not ready for primetime yet. With the cancellation of 2MB blocks, it became obvious that there would be no quick fix to the currency’s scaling problem.

Then, things began to change for the better, Bitcoin Cash began rapidly dropping from its nearly vertical price ascent, miners came back to Bitcoin, and the transaction backlog subsided. Bitcoin’s price began to rise, and as good news arrived, the price moves became even larger.



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