Value of digital cryptocurrency Bitcoin hits record high after month of turmoil.
According to the Coindesk Bitcoin Price Index, the price of bitcoin reached a new high average of $3,525 across global exchanges in the first few days of this week.
The surge followed the creation of a spin-off cryptocurrency, Bitcoin Cash on August 1st. All told, the price of bitcoin has now climbed 250% since the start of the year, rising from just under $1,000 on January first to its new all-time high. The new record high is in part due to relief by many investors in Bitcoin, that the ‘fork’ that created Bitcoin Cash did not cause a market crash as some had feared.
Fork in the road
Bitcoin Cash is the result of software that was devised several years ago as a solution to the cryptocurrency’s scaling problem, which has divided bitcoin power brokers for years. When the currencies split on August 1st, investors remained unfazed and their confidence in Bitcoin has helped keep the entire cryptocurrency market stable and growing.
While Selling on the first day of Bitcoin Cash dropped bitcoin to a low of $2,643, it has rallied by about 30% since its August 1 bottom.
Ari Paul, CIO of BlockTower Capital, in an interview with CNBC attributed the gains to a relief rally after a “relatively uneventful” split, as well as new investors buying bitcoin. “With SegWit activation and the hard fork in the rear-view mirror, bitcoin buyers see a smooth road ahead for the next two months.”
The price surge also coincides with a new all-time high in the wider cryptocurrency markets, as the value of all publicly traded cryptographic assets rose above $120 billion for the first time, up some $4 billion on the previous day’s trading.