Bitcoin price took a beating yesterday and today from a high of $2800 to a low of $2450 and eventually stagnating at sub-$2500 levels. While the upcoming hard fork could possibly be one of the reasons behind the decline in price, there are quite a few positives as well that should work in favor of Bitcoin, but aren’t.
The Bitcoin price decline and surge is increasingly becoming a common thing with 10-15% upwards or downwards happening almost every couple of days. The hard fork is seen by many analysts as being the culprit, but while BTC is declining, the new coin Bitcoin Cash (BCC) is trading in futures at impressive prices. The combined price of BTC and BCC puts the overall bitcoin pricing at $2900 levels that are definitely on the high-end of the spectrum.
New developments that will most likely have a positive impact on Bitcoin include decision by Rothschild Investment Corporation to join the Bitcoin rush by purchasing the digital currency via the GBTC (Bitcoin Investment Trust) investment vehicle. Documents available on the Securities and Exchange Commission (SEC) show that Rothschild, one of Chicago’s oldest employee-owned investment firms, has purchased shares of the GBTC for $210,000.
The Bitcoin Investment Trust is an open-ended grantor trust based in the United States. Essentially, through its publicly quoted securities, which are solely invested in and derive their price from Bitcoin, the GBTC is a way for businesses to invest in this exciting new asset.
Another report that has caught our attention is that art galleries around the world as well as individual artists are accepting several cryptocurrencies, most notably Bitcoin, as mode of payment. A breakthrough into the $60 billion world of art provides tremendous opportunities for the growth of Bitcoin and other currencies.
Dadiani Fine Art on London’s famous Cork Street became the first gallery in the very traditional field of art to accept cryptocurrencies from their customers who hail from different countries. Artists worldwide – including Matthias Dorfelt, Vesa Kivien, and Vega Macotela – are beginning to embrace cryptocurrencies, from creating cryptocurrency-inspired artwork to artistic renderings of what Bitcoin banknotes could look like.
Despite the increased interest in Bitcoin, many traditional investors remain skeptical of the digital currency due to its volatility and scaling issues. However, as issues are resolved, such as with the lock in of BIP 91, the price surges again and interest and trading volume peaks.