As of the 13th of August, Bitcoin has officially surged through the $4,000 USD mark – a sign of strength for the cryptocurrency in the wake of its recent fork.
Though some investors feared the worst as Bitcoin forked to become two different strains – namely, Bitcoin and Bitcoin Cash – their patience has been rewarded as the cryptocurrency has now soared past the $4000 USD mark; sitting at $4126.86 USD at the time of writing.
The feat marks one of Bitcoin’s largest gains yet – CNBC reports that strong Japanese demand has set prices soaring; peaking above $4200 USD. Read: How to buy Ethereum in South Africa
At press time, trading of Bitcoin in Japanese Yen has accommodated to nearly 46% of total international trade volume; trading of the cryptocurrency in the US Dollar accounted for some 25%, while the South Korean Won and Chinese Yuan followed suit with approximately 12% each.
Some analysts have indicated that Bitcoin’s resilience in surviving its fork has led to an increase of interested investors – though the cryptocurrency could once again split as the second stage of SegWit2x implementation nears this November.
Chris Burnsike, author of Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond, predicts that the price of the cryptocurrency might soon correct to a lower value.
Burnsike posits that Google search trends – wherein Bitcoin search interest increases exponentially as a result of a price surge – traditionally indicate a forthcoming market correction. Burnsike defines a bubble as a period wherein Bitcoin price doubles in a 30 day period – and has warned that although this hasn’t occured yet, such a correction may be on the horizon.
6/ After every bubble there’s a crash
In those 3 periods #bitcoin‘s drawdown:
June 2011 peak to trough: -93%
April 2013: -71%
Nov 2013: -85%