CV Market Watch™: Bitcoin At $14,000, the Moon May Not Even Be Close
Just a day after breaking to $13,000, Bitcoin continued the series of $1,000 days to climb way above $14,000.
Whether it's thrilling or ominous, the price of Bitcoin is unstoppable. Just a day after records at 12 and 13K, Bitcoin stood way above $14,000, once again causing a slump among altcoins.
In fact, Bitcoin managed to add $2,500 in one single day, growing by 16%, a rate usually reserved for altcoins. The dominance of Bitcoin increased once again to 61.1%, as the total market cap of cryptocurrencies is on its way to $400 billion.
The new vertical price rise called for a new batch of negative prognoses. However, this does not mean the climb stops here- predictions abound of prices up to $25,000 or even $40,000.
Korean markets are expanding the price climb even more, with a dramatic rise at $17,118.90. The Bitfinex price remains depressed:
The pace of the climb was seen as worrying at $10,000, but the trend has accelerated even more.
#Bitcoin $9000-$10000: 2 days— $20kBTCRichard Heart (@RichardHeartWin) December 7, 2017
$10000-$11000: 1 day
$11000-$12000: 6 days
$12,000-$13,000: 17 hours
$13,000-$14,000: 4 hours
At these prices, Bitcoin will meet with the effect of futures trading, allowing investors to short the price. Until now, no other cryptocurrency has faced this kind of factor to pressure the price.
At there heights, it is unclear who is entering Bitcoin, and whether big money is flowing in, or there is the mania of retail investors from Asia. The meteoric price rise has also caused a network congestion, as just within a day pending transactions rose from around 50,000 to new heights around 120,000 still unconfirmed, even at the new normalized hashing rate.
The high fees and long waiting times are putting a question mark on the utility of Bitcoin as a payment system. Recently, the Steam game provider removed the Bitcoin payment option. The high and rising prices of Bitcoin are making users question purchases in the past made in Bitcoin, seeing they may have squandered a potential nest egg for the sake of novelty.
Average fees have spiked again to above $7, meaning a faster transaction would require a higher payment. So even with prices at $14,000, investors may see trouble cashing out, especially with services that require more confirmations.
A correction of Bitcoin could easily be 30%, but the most dramatic scenario is a wipeout of 95% of the value in a very short time.