After yesterday’s record-breaking rally, Bitcoin prices have dropped down to just below $7,250 as of 10.08am on Thursday November 9.
Today’s high is $7,471.88 down from yesterday’s record of more than $7,800, according to CoinDesk.
The rapid spike of around 11 per cent came off the back of the decision to pull the plug on the controversial Segwit2x software update.
The update would have increased bitcoin’s block size to 2MB, but was met with a unanimous lack of support from the crypto community.
Mike Belshe, CEO and co-founder of BitGo, yesterday announced the decision to suspend the update, which would have split bitcoin in two.
He said: “Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together.
“Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time.
“Continuing on the current path could divide the community and be a setback to bitcoin’s growth. This was never the goal of Segwit2x.”
Yesteerday’s high is just the latest record for the token, after bitcoin surged from around $6,500 to $7,500 at the start of the month.
The token’s strong performance was backed by the Chicago Mercantile Exchange’s decision to approve it on the futures market by the end of the year.
Traders and investors are now certain that bitcoin is growing in both mainstream appeal and strength.
Bitcoin price: The cryptocurrency has been on the rise this month
Iqbal Gandham, UK Managing Director at eToro, believes conditions are now ripe for people to consider their cryptocurrency options.
He told Express.co.uk: “There are many reasons why investors might want to consider investing in bitcoin now.
“The reality is that an increasing number of people are waking up to its potential.
“Plenty of respected institutions are investing heavily in the blockchain technology behind it, and recently the Chicago Mercantile Exchange announced that it will soon begin trading Bitcoin derivatives.
“This all signals Bitcoin’s entrance into the mainstream and the fact that investors are backing the idea that these technologies have the potential to remake our world.”
Bitcoin price: Some analysts are concerned that bitcoin could be in a bubble
Some analysts are however sceptical about the token’s success, and are concerned bitcoin could be heading for collapse.
There are many reasons why investors might want to consider investing in bitcoin now
Joe Pindar, director of product strategy at digital security firm Gemalto, likened the rapid rise of bitcoin to the infamous DotCom bubble of the late 1990s and early 2000s.
In his mind, the bitcoin bubble is a ticking time bomb that could go off without notice.
He said: “With so many new cryptocurrencies being launched on almost a daily basis, there is no doubt that the cryptocurrency bubble is going to burst.
“But like all bubbles calling the exact time it will go pop is extremely hard.
“My advice is not to jump in head first, but don’t expect cryptocurrencies just to be an overnight sensation.”
Meanwhile, Mr Gandham advises anyone interested in diversifying their investment options not to rely solely on the cryptocurrency craze.
He said: “Of course, Bitcoin shouldn’t be the only thing you invest in and, as a relatively nascent market, it’s going to be a high-risk part of your portfolio.
Bitcoin price: The cryptocurrency was boosted by CME’s futures market approval
“But we don’t believe in talking down to investors and locking them out of the market because of potential volatility.
“It is important that investors understand the risks associated with investing before going ahead, but this is applicable across all asset classes not just cryptocurrencies.
“Diversifying can help balance your risk-return profile, rather than being invested in just bitcoin, for example.
“Our Crypto Copy Fund is invested in a range of cryptocurrencies, offering investors a long-term, diversified investment strategy.”