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BITCOIN ...........How Far will the Spike go, after Exceeding the $7,000 Mark

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Bitcoin investors and Traders alike were treated to a spectacular display of strength by the digital currency flagship Bitcoin.  The price of Bitcoin continued its five days upward trajectory, barely blinked as it smashed through the $7,000 mark. 

What were the reasons for this feat and what does the future hold?
The following are the known reasons for the bitcoin price spike that has continued till today.

The biggest factor behind the rally was the announcement of Chicago Mercantile Exchange’s decision to offer Bitcoin futures.

Firstly, what is a Bitcoin future and why is it causing such a buzz on main street, Wall Street, as well as on the Bitcoin price.

Futures are an essential part of mainstream trading and investing; however they are also reserved for more steady and less volatile assets. Now, with this decision, Bitcoin is being legitimized somewhat, and that has again piqued Wall Street’s interest.  

Wall Street, despite their divide and their clashing of ideologies, still has an important role to play in Bitcoin price as the financial bastion has shown their influence before.

In an earlier rise, coming after the Aug. 1st fork, Bitcoin hit a massive rally that was attributed to Wall Street flooding into Bitcoin once the heat was off from the so-called ‘civil war.’

Now, this move by the CME has again given Wall Street more reason to put faith in Bitcoin and thus the demand has skyrocketed, along with the price.

Bitcoin’s step into mainstream trading, however, is also a poignant reminder that the digital currency is still in diapers when it comes to institutionalized trading and investing.

Large-scale mass adoption in trading has a long way to go as there is still room for ETFs, which would really open things up, but that is a long way off still.

The SEC has maintained their position on a Bitcoin ETF, stating that it is not on the cards while they continue to watch its volatility and nature.

Spike and drop - Bitcoin’s rally reached as high as $7,300, but quickly fell over $500 in a mini-correction. However, it has leveled off again over $7,000.



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