The much gaining in popularity cryptocurrency, Bitcoin, doesn't stop amazing me. In contrast to trading opportunities in the real environment, so trading say real currency, gold (physical commodity), real estate, stocks/bonds (share of ownership of a company or a government or a project) and so on; a virtual man-made concept / currency gains tremendous traction in recent few years. Cryptocurrencies, including Bitcoin, is yet to be fully accepted as a real currency by institutions and many retail traders, partly because of the virtual existence, lack of regulation and partly because of the unstable trading environment and price action (or the lack of it!)
Take a look at this week's Bitcoin / USD chart and there's almost a $1000 spike and that too in just 5 days! Prices have jumped from recent lows of $1845 to nearing all time high of $3000 (in June). This sudden spike in the price of cryptocurrency is said to be attributed to a code upgrade known as SegWit2x, which aims at increasing trading networks' transaction capacity. So larger block size for trading Bitcoins via its mines. This implementation is also said to bring some of the network's data outside its main network. Still in a trial phase, this solution will be finalized post testing limits.
Well, so far, for sure this approach appears to be a big hit amongst the bitcoin trading community. Price spike is also due to larger block size being traded thereby a sudden increase in demand. Its probably an interesting time for the pro-camp, who will wait and closely watch the price action for next few weeks. Hopefully these changes will also bring in the much desired stability in its overall price.
Another point to note in this daily chart is the growing interest in cryptocurrency as indicated by increased plateau of trade volumes.
This article is based on recent observations and developments in a specific financial instrument. It should not be treated as a recommendation to trade or to not trade this specific instrument. Nevertheless, hope you enjoyed the read and found it informative.