Bitcoin price has a major impact on the rate at which other cryptocurrencies trade. Despite the many challenges facing the global cryptocurrency industry, the price of Bitcoin has been steadily increasing. The prices have more than doubled since March this year.
Bitcoin Trading at $8,847
Over the weekend, the price of Bitcoin has increased by more than 10% to $8,847 in most of the exchange platforms. As expected, the price of other cryptocurrencies also recorded a similar improvement in prices with Litecoin price increasing by 9% and Ether 6%. Note that Ether is the second largest digital token in the world today.
One of the factors that contributed to this increase in Bitcoin price is major corporations and companies showing interest in the digital currency and investing in various blockchain-powered startups.
One example of a financial institution that has stake in the industry is Fidelity Investments. Reports indicate that this financial institution is in the final process of setting up a platform that will enable it buy and sell digital asset for institutional clients.
Another influential player in the market is E*Trade Financial Corporation whose team is working hard to poise it for cryptocurrency trading. At&T Incorporation has also confirmed that it will permit its customers to use BitPay, a blockchain powered payment processor, to pay for their bills online.
Bitcoin Price Surge beyond its Intrinsic Value
A quick look at the trend confirms that Bitcoin price has increased by nearly 70% this month alone. This surge in Bitcoin price happened despite concerns raised by JPMorgan Chase & CO. financial strategists that the price increase may be beyond its intrinsic value.
One of the senior market analysts working at eToro, Mati Greenspan, recently stated that easier use cryptocurrency translates into greater use case as well as greater level of adoption. Matt went ahead to warn that the tipping point might be very close now based on the market trends and statistics.
Bitcoin’s fantastic and encourage run this year comes after a painful downward trend that cost investors thousands of dollars. The downward trend has lasted for more than four months as it started late last year. The price of Bitcoin at the time dropped by more than 70% and most investors hurriedly sold of their assets due to fear that the prices would continue to drop further thereby making the investment unviable.
In a recent interview, the president of Crypto Hedge Fund, ProChain Capital stated that “it takes two to tango, the more merchants allow their customers to pay for goods and services using cryptocurrencies, encourages more people to invest in them and use them.
Cryptocurrency meltdown is still fresh in the minds of many investors and not everyone is betting on digital assets being accepted globally as an equal and secure mode of payment. That said, the increase in price of bitcoin and other cryptocurrencies is a sign that the industry is headed in the right direction. Get more news about cryptocurrencies here.