Bitcoin’s new milestone: Cryptocurrency reaches $17,000 value
Yesterday, bitcoin reached another new milestone less than a month after hitting the big $10k mark. Reaching a new high of $17,000 on 7th December, it has since returned to just below $16,000.
No one could ever say that cryptocurrency is boring, and this new milestone proves it. Having flown so high only to come back down again is part and parcel of investment, and the tumultuous nature of Bitcoin in particular keeps customers and the press interested. That’s precisely what pushed the price up to reach this new milestone. Significant press covering in response to reaching $10,000 brought the validity of Bitcoin to the masses – some of whom were interested. Increasing the customer base so quickly resulted in higher value, hence we see the surge to $17,000.
But overnight, markets have calmed down a little and Bitcoin is now sitting just below $16,000.
The news that has been driving the interest was CME’s announcement earlier in the year that they will begin trading Bitcoin contracts from December 18th. As the Independent reports, since then, other big players have been announcing their interest including CBOE who will begin in a couple of days on 10th December. The Australian Stock Exchange (ASX), Nasdaq and Cantor Fitzgerald have all shared their plans to develop and implement Bitcoin trading opportunities or derivatives in the near future, without setting a key date.
Further developments that are strengthening the value of Bitcoin include a successful test of the bitcoin scaling technology called the Lightning Network. This comes as welcome news given that CoinBase encountered a slow-down due to unmatched traffic levels during the surge to buy Bitcoin. Cryptocurrency, in particular Bitcoin, has faced criticism for the time it takes to transact, with calls to improve it. The Lightning Network will essentially allow transactions to take place in seconds.