Bitcoin (BTC) price has been slowly but steadily ticking up over the past few weeks, reaching the $11,000 mark for the first time since early September. The increase in price is being attributed to a decrease in congestion on the Bitcoin network as well as renewed investor interest.
The Bitcoin network has been heavily congested for the past few months, with transaction fees reaching all-time highs as a result of high demand for block space. This congestion, coupled with uncertainty surrounding regulatory issues and the possibility of a hard fork, had caused investor confidence in Bitcoin to wane. However, recent events have led to a decrease in congestion and an increase in investor confidence.
One such event was the realization of the SegWit2x hard fork. The hard fork was scheduled to take place in mid-November, but due to lack of consensus among the Bitcoin community, it was called off. The cancellation of the hard fork led to a decrease in uncertainty and an increase in investor confidence.
Another factor contributing to the increase in Bitcoin price is the launch of Bitcoin futures trading on the Chicago Mercantile Exchange (CME). The launch of futures trading has brought institutional investors into the Bitcoin market, which has led to increased demand and higher prices.
As Bitcoin continues to gain popularity and mainstream acceptance, there are several factors that could contribute to the next price spur. One of these factors is the increasing number of merchants and businesses accepting Bitcoin as a form of payment.
Another potential factor is the continued adoption of Bitcoin by institutional investors. The launch of futures trading on the CME is just the beginning of institutional investors entering the Bitcoin market. As more institutions invest in Bitcoin, the demand for it will increase, leading to higher prices.
The ongoing development and adoption of the Lightning Network, a protocol designed to improve Bitcoin’s scalability and allow for faster and cheaper transactions, could also contribute to an increase in Bitcoin’s price. The faster and cheaper transactions offered by the Lightning Network could make Bitcoin even more attractive to users, leading to increased demand and higher prices.
Overall, the future of Bitcoin’s price is uncertain, but there are several factors that could contribute to a sustained increase in price. The decrease in congestion on the Bitcoin network, the launch of futures trading on the CME, the increasing adoption by merchants and institutional investors, and the ongoing development of the Lightning Network all point to a bright future for Bitcoin. Investors will continue to monitor these and other factors closely as they ponder the next price spur.
Bitcoin’s price is recovering as congestion on the blockchain eases, according to eToro’s Callie Cox. Despite inflation concerns among crypto traders, bitcoin has surprisingly outperformed the S&P 500 on most CPI and Fed days and remains a valuable asset. Ethereum, while riskier, is also proving its value, according to Cox. However, extraterritoriality is at the forefront of a crypto court case involving Bankman-Fried, and whether U.S. authorities can reach offshore exchanges and participants with limited ties to the United States. While the industry waits to see if the extraterritorial tendencies of U.S. regulators will be tested in court, some hope it will provide clarity for the industry. In other news, Bittrex recently filed for bankruptcy, months after announcing it would wind down operations in the United States and after being sued by the SEC.
As blockchain congestion eases, bitcoin’s price has started to recover, according to eToro’s Callie Cox. She acknowledged that inflation remains a concern among crypto traders, but bitcoin has surprisingly outperformed the S&P 500 on most CPI and Fed days, making it a valuable asset. Ethereum is also proving valuable, although it is a riskier investment. The number of projects being developed on the Ethereum blockchain is a testament to its economic value.
Extraterritoriality has been a critical issue in the crypto industry, with a court case involving Bankman-Fried bringing it to the forefront once again. The case raises questions about how far U.S. authorities can reach offshore exchanges and participants with limited ties to the United States. The CFTC’s increasingly expanded view of its jurisdiction has been challenged before by offshore exchanges, such as the BitMEX case. If the extraterritorial tendencies of U.S. regulators are tested in court and enshrined in case law, it will provide certainty for the industry.
Meanwhile, Bittrex recently filed for bankruptcy, months after announcing it would wind down operations in the United States and after being sued by the SEC. It was sued for allegedly facilitating the unregistered sale of digital securities. This is another example of the regulatory challenges facing the crypto industry, which can have consequences for businesses whether they are located domestically or offshore.
In conclusion, while bitcoin’s price is recovering, the crypto industry is grappling with regulatory uncertainties, including extraterritoriality. Ethereum is proving its worth despite its inherent risks, and it is clear that inflation is a concern among crypto traders. Bittrex’s bankruptcy is another example of the challenges that crypto firms face, as regulators increase their scrutiny of the industry. While the industry waits to see how the Bankman-Fried case will play out, it is clear that establishing clarity around U.S. regulators’ extraterritorial jurisdiction will benefit the industry by providing certainty.