It turns out Tim Draper, a venture capitalist, and early Bitcoin adopter, was right about Bitcoin reaching the $10k after he predicted it three years ago when the value was still around $400. The $10k price mark is significant for users of the cryptocurrency because it is the first time that a digital currency had reached a five-figure level, especially after its value significantly less at around $1,000 in the beginning of the year. But Bitcoin continued to increase up to another all-time high price above $11,000 after an hour later.
Despite hitting both $10k and $11k marks, Bitcoin is still a volatile currency. Both of these record highs, were short-lived as the price sloped down to $9,000. Apparently, the almost-$2,000 price decline was caused by ‘service outages’ from various cryptocurrency exchanges. In fact, these were major exchanges, including Coinbase, Bitsamp, and Gemini that went offline.
Moreover, the high trend continued for Bitcoin as it descended under $10,000 as of writing, but Bitcoin’s price is similar to a rollercoaster ride where the price can go up or down rapidly. Currently, Bitcoin’s price sits around the $9,500 to $10,000 range.
How Did Bitcoin Hit $10k?
In summary, the cryptocurrency hit the mark due to the healthy market, more adopters, and hedge funds. But how did Bitcoin grow over 1,000 percent just this year?
The increase in the market, or when Bitcoin draws closer to mainstream users, where media and investors talked about cryptocurrencies, helped people familiarize themselves with Bitcoin and virtual currencies. Not only this, but more countries showing interest in the regulation of cryptocurrencies influence more people purchase and keep their own bitcoins. Furthermore, hedge funds or institutional money have seen a significant increase in investors helped the market grow.
Early Bitcoin adopters finally felt disproved after Bitcoin constantly took the market by storm over the years and is now taken seriously. Various posts on social media websites were filled with regrets from users who had the opportunity to buy into Bitcoin but had not. Bitcoin’s narrative will surely change as the cryptocurrency is only getting started.