Since our last price piece, bitcoin has gained another two dollars in value and is hovering at around $590 as of press time. While developments surrounding the recent Bitfinex hack may have shaken traders’ confidence in bitcoin, an upcoming Silk Road auction could push the price back over $600.
“Bitcoin price is gradually approaching $600,” one source mentions. “Could advance continue immediately? Possibly, but with a few obstacles to consider.”
One of those obstacles involves slow-moving price indicators. Since the Bitfinex hack last week, price charts are showing bitcoin as a growing currency, but once the price hits $600, it’s likely to stay there for some time, and further advancements could fail to meet our expectations.
Another barricade to bitcoin’s success could be a subsequent rise in altcoin prices. With bitcoin’s recent fall, and safety measures once again being questioned, altcoins could earn their moment in the spotlight, which may cause bitcoin to visit the financial Southland once again. Bitfinex is even creating a specific altcoin, BFXcoin, to cover its losses among users and gradually step back into the market:
“After a ~36% bail-in imposed on every exchange user’s funds, the company officers have announced that they will convert their customer liability to an altcoin – specially created for the occasion. The exchange will allow customers to access their diminished funds and brand new tradeable asset, BFXcoin, in controlled stages.”
The move may get things back on track, at least for a while, but it could also temporarily halt bitcoin’s domination.
One ray of hope exists in the new auction set to take place by way of the U.S. Marshals Service. Nearly 3,000 bitcoins collected from alternate Silk Road cases will be auctioned on August 22. Interested parties are required to register by August 18.
This will be the fifth USMS bitcoin auction since the summer of 2014. The majority of bitcoins collected for those events came directly from Ross Ulbricht, the mastermind behind Silk Road. This time, it’s a different scenario. Less than three of the bitcoins being offered are from Ulbricht’s personal stash, while the remaining number derive from various cases surrounding the black market’s closure.
In the past, bitcoin auctions have helped turn the price around, even if only temporarily, and many wonder if this new auction will bear similar results. If it does, we may be treated to another bitcoin spike very soon.
Will Bitcoin hit $600 again soon? Post your thoughts and comments below!
Image credits: Nakamoto Institute, Bitfinex.
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