Bitcoin Reaches $7,500 All-Time High – Causes Explained

Afrter the massive price surges of last, November has started positively for Bitcoin. On Friday, the digital coin managed to skyrocket past the resistance of $7,400 thus reaching a new all-time high in the crypto asset history. Currently, the new ATH by BTC is of $7,554, following the 6% increase in price.

At this time, some economic analysts seam baffled by the reasons behind those constant price rises. Let’s not forget to remark the public figures of financial institutions and high-profile companies whom have recently made statements against the purchase and use of the digital currency. In fact, along the last month, Bitcoin was labeled a commodity, a bubble about to burst, an illegal way of transferring money and more.

So, if there are so many negative aspects, why does the price keep on reaching new hights? Well, certainly there may be several reasons behind the last price surges.

The upcoming hard fork
In theory, hard forks are not advantageous for digital currencies, as it results in breaking a part of the blockchain and create a new digital currency. Nonetheless, when Bitcoin Cash and Bitcoin Gold were released, the market witnessed that Bitcoin Classic remained unaffected by the forks. In fact, it rased in value. Therefore may be the market getting ready for the upcoming hard fork, and hence showing that the traditional Bitcoin protocol is endorsed by more people.

The CME Group
Have you ever heard about it? It’s the world’s largest derivatives operator. They have lately announced steps to introduce in their portfolio Bitcoin futures contracts trading. This streategy will bring more institutional investors to the digital currencies arena, thus meaning to more capital being pumped in digital currencies. As per the CME group, those derivatives will be settled via cash, and the price will be based on the Reference Rate CF Bitcoin . The decision to launch Bitcoin futures contracts trade is likely to bring the coin into the regulatory fold, which basically means that it’ll help the creation of more complex financial instruments based on the digital asset. This is likely to be one of the main reasons behind the price surge.

The ICO trend
Along the last couple of months, a lage number of start-ups have decided to launch their Initial Coin Offerings to raise funds for their ventures. There has been a lot of noise surrounding ICOs, including their benefits and risks, thus lots of capital is constantly being invested in digital tokens, thus leading to a higher market cap for digital coins in general. Bitcoin might be benefitting from this trend as well.

Based on everything that has been outlined so far, what are your thoughts on the recent price increases? What value will the digital currency manage to reach by the end of the year from your point of view? Let us know your thoughts in the comment section below.