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Bitcoin Price Breaks Through $4,200 One Day After Reaching $4,000

August 14, 2017 at 18:47 by Yahia Barakah

The price of a single Bitcoin surged over the weekend to reach more than $4,200 on Monday. Demand for the digital currency continued growing despite a recent currency split that created a new alternative to Bitcoin named Bitcoin Cash.

The split, which is commonly referred to as hard fork, raised concerns between Bitcoin enthusiasts of a sharp drop in the value of the original virtual currency. The alternative currency provides users with an upgrade that allows a number of transactions larger than the original to be handled each minute.

However, the smooth split increased investors’ confidence in Bitcoin and its underlying technology as the majority of the Bitcoin community appeared to support the original currency.

Meanwhile, Bitcoin Cash plummeted since more virtual currency miners and users chose to support SegWit, an upgrade that takes a different approach to increasing transaction limit. Bitcoin Cash now has a market value of about $5 billion.

Gains in the Bitcoin price were further stoked by increasing geopolitical tensions between the United States and North Korea last week. The Asian nation said that a missile strike against a US base on Guam island is being considered after US President Donald Trump promised fire and fury if threats from the nation continued.

The exchange of threats between the two nations weighed on stock markets and increased demand for the relative safety of Bitcoin, which often rise in times of geopolitical turmoil.

However, the rapid gains over the weekend attracted more skepticism toward the virtual currency, which rose more than 300% in 2017. Some analysts warned of the strong volatility Bitcoin often display, which could play out in the form of a correction that erases some of the recent gains.

BTC/USD rose to 4,256.9 on the Bitstamp exchange as of 18:15 GMT on Monday after touching 4,320.0 at 17:15 GMT, a new record high for the pair. BTC/USD began trading today at 4,067.6.

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