Most investor’s favourite cryptocurrency, Bitcoin, has almost tripled in value over the last 12 months.
However, recently the digital currency has hit a bump in the road, losing almost 60% since June. Uncertainty over Bitcoin’s future sent the digital asset lower over the weekend.
Bitcoin essentially crashed over the weekend, giving up 12%, before sharply reclaiming most of its losses on Monday, in the kind of rebound that could take up to a year in the stock market.
One of Bitcoin’s pitfalls is its transaction limitations (1MB every 10 minutes), which creates a backlog of pending transactions and slows the system down.
However, Bitcoin miners are hinting support for the cryptocurrency’s improvement proposal (BIP) 91 to help solve the transaction problem. 93.8% of miners are backing this project and the news sent Bitcoin higher.
Bitcoin spot up after the news hit markets, trading at $2740 on Thursday evening (at just $2200 Thursday morning)
If the slow transaction process is rectified, we could see Bitcoin climb even higher.
By Adrienne Murphy – Chief Market Analyst, Avatrade