This Wednesday, December 6th, saw Bitcoin prices skyrocket suddenly over the $12k USD mark early in the morning, after which it boomed like never before in a rush that saw exchange value for the popular cryptocurrency rise to $13,275 in the evening.
Shortly after this article was initially posted, Bitcoin prices rose to an unprecedented $14k.
In spite of recent public discussion about a growing value bubble about to burst, this recent buying boom has apparently been started by two factors: a cryptocurrency lust in the ranks of South Korean financial speculators, and information that until next week, the U.S. cryptocurrency market will see all its bitcoin derivatives sold.
The Wednesday Bitcoin rush is also very telling of the cryptocurrency’s rise in the mainstream – previously, a $1k-rise used to happen over larger periods of time, weeks, even months; now, it can happen over a day, even over a few hours. This price rise is very similar to that of November 29th, when Bitcoin prices went from $10k to $11k over 12 hours.
The chart below, provided by Coindesk, shows the variation of Bitcoin prices over the past 24-hour timeframe.
Quite expectedly, there are many people unconvinced that the cryptocurrency is something that will last over time and become a permanent means for trade and acquisition. Most recently, Nordea Bank CEO in the Scandinavian Peninsula dubbed Bitcoin a “joke”. In the same space, the head of the biggest pension fund in the state of Denmark expressed their great discomfort with regard to the popular cryptocurrency.
Nonetheless, such skeptics, among whose ranks we also find the likes of long-time cryptocurrency opponent Jamie Dimon, JP Morgan Chase CEO, haven’t done much in terms of practical measures or views to put a stop to enthusiasm among investors for Bitcoin, especially in very interested markets such as the Asian one. According to a Bloomberg analysis, South Korea has taken such a liking to Bitcoin that its investors can be seen frequently paying large fees to acquire it.
The next big hurdle for the cryptocurrency to vault over will certainly be next week’s bitcoin futures contracts trading open Stateside. Experts predict that hedge funds and other parties that are interested in accumulating Bitcoin capital that have since waited for the appropriate moment to define their financial positions will invest large sums of money upon the Bitcoin derivatives’ sale.
Despite the great financial potential of next week’s developments, there is also legitimate concern about them. Thomas Petterfy, CEO of Interactive Brokers and multi-billionaire, has expressed concerns to Fortune that the derivatives sale could offset a financial crisis the likes of the one we have seen in 2008. We will have to wait and see further development.