The price of bitcoin has recovered to $7,000 at the time of writing, following a tumultuous week for the cryptocurrency in which high volatility saw prices plunge to as low as $5,600 over the weekend.
The news will be welcomed by bitcoin investors, following large scale sell-offs in the wake of intense debate about the future direction of the bitcoin blockchain.
News around the next hard fork that was scheduled to take place in the bitcoin blockchain resulted in increased sell pressure, forcing the currency down to these recent lows over the weekend.
However, with more positive news emerging, including rumors of several large hedge funds preparing to move on cryptocurrencies, the price looks to have returned to an upwards trajectory at the time of press.
Bitcoin surpassed $7,000 for the first time at the beginning of the month, setting an all-time high for the digital currency. Last week, the price hit $7,800 for the first time, before the price plunge wiped over 25% of the currency’s value overnight.
Today, bitcoin has recovered to $7,042, and some analysts are suggesting the price will continue to trend upwards over the coming days.
The story of bitcoin prices in 2017 is all the more remarkable when you look back to January. At the start of the year, bitcoin was trading around just $1,000, with today’s price representing over a 700% gain in just a matter of months.
Hedge funds CME Group and Man Group have both addressed bitcoin investments in recent weeks, unveiling plans that could see both companies taking increasing positions in digital currency markets.
This comes in spite of ongoing warnings from regulators, particularly aimed at retail investors, over the high risks involved, and the high levels of volatility in the underlying market.
Nevertheless, as bitcoin and other digital currencies are bought more heavily by hedge funds and other financial institutions, analysts expect the price to continue to rise.
It remains to be seen whether bitcoin can recover the $7,800 highs of last week, and whether the currency can continue the meteoric rising price trend into the close of the year.