Bitcoin (BTC) Price Surges Past $7,000 Once Again

Omar Faridi

Bitcoin (BTC) has recently surged past the $7,000 mark, according to data from CryptoCompare. After an extended bear market, which has seen cryptocurrency prices decline sharply from their all-time highs in December of 2017, the digital currency market as a whole also seems to showing some signs of recovery.

minute_CryptoCompare_Index_BTC_USD_289_51535458852382.pngSource: CryptoCompare

While it might be too early to consider these positive price movements to be the start of a bull run, it’s worth noting that bitcoin’s price did drop below $6,000 around mid-August. The world’s most dominant cryptocurrency, however, is now currently trading at $7,012.11 at the time of writing.

Altcoins Also Surging 

As bitcoin’s price has started to rise, some altcoins are making even more substantial gains.

Notably, CryptoGlobe reported on August 26th that, NANO, which is referred to as “the new global currency”, saw its price surge by as much as 84% in the past week. This increase in the coin’s price may be due to the Nano foundation recently announcing that former vice president of Foreign Exchange at Citibank, Andy Woolmer, had joined NANO’s development team as their first official advisor.

Meanwhile, ICON (ICX), often referred to as the Ethereum of South Korea, also recorded massive gains yesterday.

The surge in the cryptocurrency’s price was largely due to its technology partner, ICONLOOP, being chosen to participate in a South Korean government program. Reacting to the news, ICX’s price shot up by over 20% within 24 hours following the announcement to around $0.96 (from previous lows below $.50).

Bitcoin (BTC) Stands Strong After ETF Rejections

In other Bitcoin news, Jordan Ross Belfort, a former US stock broker charged for orchestrating pump-and-dump scams that resulted in $200 million in losses for numerous investors, remarked that the same approach he used to scam people is “exactly what’s happening with bitcoin,” adding that:

The whole thing is so stupid, these kids have gotten themselves so brainwashed.

Despite Belfort’s lack of confidence in the cryptocurrency, there are several positive signs that can be drawn from bitcoin’s price movements.

First and foremost, despite the recent rejection of nine Bitcoin ETF proposals by the US Securities and Exchange Commission (SEC), bitcoin did not experience the kind of sell-off many analysts might have predicted.

Furthermore, as reported yesterday (August 27th), technical analysis indicators had shown that as bitcoin’s price approached $7,000 level, it was expected to break through it.   

Moreover, bitcoin’s price analysis suggests that now that it has surpassed the $7k mark, the chances of the coin going on to reach $7,500 and $8,000 are now substantially higher.

Analyst Claims Lightning Network Adoption May Be Part of the Reason for BTC Rally

Bob Iaccino, an experienced fund manager and veteran trader, has argued that the introduction of the Lightning Network (LN), a layer-two solution for transferring cryptocurrency payments in a quick and cost-effective manner, may have contributed to the recent surge in the Bitcoin (BTC) price, as well as that of other cryptoassets.

Iaccino, whose comments came during an interview (on May 15th, 2019) on CNBC’s Futures Now, said:

[I am not sure] who’s actually doing the buying, but part of the reason why [cryptocurrency prices are increasing] is because of the inception and application of software called the Lightning Network. [It] actually makes [processing] small transactions a lot easier for those who hold Bitcoin.

Lightning Network Making It More Practical To Adopt Bitcoin

He continued:

When you look at Visa, which processes 65,000 transactions per second (TPS) [while the] Bitcoin [blockchain] does about seven. [However,] Lightning Network gets smaller transactions off of the blockchain network, making it [more practical] to adopt Bitcoin as a currency.

According to data from 1ML.com, there are presently 8,369 nodes running the LN protocol, up 4.29% in the past 30 days. 1ML data also shows that there are 37,405 LN-based channels currently available, with a total network capacity of 1,038.63 BTC, an amount valued at over $8.3 million at press time.

Moon’s Browser Extension Features Lightning Network Support

In order to make it easier to spend bitcoins at giant online retail outlets, such as Amazon, cryptocurrency payment processing startup, Moon, has added support for LN-enabled wallets. Users can send and receive LN-based payments by using Moon’s browser extension, which supports the layer 2 protocol.

Last month, Radar, a firm which has developed a decentralized cryptoasset exchange (DEX) on the Ethereum network, announced that it is planning to launch a suite of software tools for building various solutions using the LN protocol.

Radar Releases Suite Of Lightning Network Tools

Radar’s software includes a configuration helper, which may be used to set up a LN node. The company has also developed an invoice “playground” that allows users to test if their nodes are connected to each other, and a liquidity tool through which crypto payments can be transferred.

The LN-enabled toolkit is part of Radar ION, a service operated by Radar’s management that helps new users learn how to use the Lightning Network for business-related transactions. As mentioned, Radar’s development team has also been working on building decentralized Ether-based exchanges, including Radar Relay.