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Earlier this week, bitcoin neared in on $4,500–is $5,000 bitcoin in the near future?
If one thing’s certain, it’s been a volatile–but exciting–few weeks for the bitcoin price as it continues breaking new records on what seems like a daily basis.
On Monday (August 14), the digital currency reached an all-time high of $4,464.38 before tumbling under the $4,000 mark again on Tuesday (August 15). By Wednesday, the cryptocurrency mammoth was back above the $4,000 mark to $4,346.14 as of 6:17 p.m. EST.
Despite bitcoin’s recent fluctuations, its price is up over 320 percent-year-to-date, and has particularly been on a tear since Bitcoin Cash was introduced at the beginning of August.
Case in point, it wasn’t that long ago (August 11) that bitcoin clocked in at $3,500 and, with how much the digital currency has climbed overall in such a short amount of time, it begs the question of how soon will it reach $5,000?
CNBC reported on Monday that Ronnie Moas, founder of Standpoint Research projected in July that bitcoin will reach $5,000 by 2018, although it’s certainly making a strong case to reach that target well before then.
While it could be just days, weeks, or even months until bitcoin reaches $5,000, it’s hard not to relate the digital currency’s price increase to the bitcoin/bitcoin cash split.
“The sudden price surge in Bitcoin coincided with the confirmation of BIP 91’ adoption, as the currency rose to new highs above the $3000 mark within days, surpassing previous levels of resistance,” Shazlie Khan, research analyst at BIS Research told the Investing News Network (INN) in an email.
Khan continued, stating that there has been “widespread uncertainty looming” in the market since the first bitcoin fork.
“The split of bitcoin could have put an unprecedented downward pressure on cryptocurrency prices,” she said.
In the two weeks since bitcoin cash was introduced, it has found comfort in the $330 range, and has processed roughly 699 blocks since being forked, Bitcoin.com reported on Monday.
Khan also said that the activation of Segregated Witness (SegWit)–which will help facilitate additional transactions–”has unlocked an array of services that could enhance security and enable instant transactions.”
“Having survived a major obstacle, bitcoin’s prospects appear bullish, and the prices are expected to push higher even further,” Khan said.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.