Investors that bought Bitcoin last month are looking really smart right now. Some of them, especially those who bought at the bottom, would have gained upwards of 90% on their investment.
Some of the biggest gains came this week.
For instance, we reported yesterday that BTC prices had advanced more than eight percent in a single trading session, putting Bitcoin above $5,000 for the first time ever. Now that milestone is fading into the distance.
Bitcoin prices jumped another 9.15% in the last 24 hours, driving the Bitcoin to USD exchange rate to $5,672.52. What exactly is going on?
Daily Bitcoin Chart:
There are three main factors driving the Bitcoin price forecast at the moment.
- Bitcoin Hard Fork: Bitcoin developers cannot agree on a roadmap for the future. As a result, some of them are splitting off into a rival currency. But in order to do that, they need to own Bitcoin at the time of the split. They are bidding up the price of Bitcoin alongside those who believe the original blockchain will triumph. Put simply, Bitcoin is getting a double tailwind from the hard fork.
- Licensing in Japan: The Japanese government developed regulations on cryptocurrencies that required exchanges to secure licensing. This created uncertainty as to how tough the process would be, which exchanges would ultimately survive, and how the changes would affect market liquidity. But since 11 exchanges secured licenses at the end of September, BTC prices have been on a rocket ride.
- Michael Novogratz: Billionaire hedge fund manager Michael Novogratz is raising $500.0 million to invest in cryptocurrencies and ICOs. He contributed $150.0 million of his own wealth to the fund, according to CNBC reports, meaning that he’s putting his wallet on the line. Novogratz also generated significant Bitcoin news by issuing a $10,000 price target on the currency (months after we did, I might add).
By reaching $5,000, BTC has already fulfilled our short-term forecast. It happened earlier than expected.
As a result, we BTC prices may reach our $10,000 Bitcoin price forecast ahead of schedule, but don’t expect a comfy ride. Once the Bitcoin hard fork takes place, a correction is all but guaranteed.