Bitcoin’s price has increased by almost $200 in just one day following revelations that Trump’s Press Secretary, Sean Spicer, may have twitted out a bitcoin identification code for unknown reasons.
The news made it to the frontpage of r/politics, bringing widespread attention to bitcoin which has now very much gone mainstream in America as far as brand awareness and general knowledge of what it basically is or does is concerned.
Bitcoin’s market cap therefore increased to some $24 billion, but the total market cap of all digital currencies remains relatively unchanged at around $38 billion, potentially suggesting this may be just temporary re-shuffling rather than new adoption.
Almost all digital currencies have gone down while bitcoin has risen. That may be because many of them have reached all-time highs, with traders perhaps thinking they need some correction or sideways action.
Ethereum, in particular, went up $30 in just three days, from around $50 to a high of $85, with bulls and bears battling to cross the line, but, at $85, resistance appeared considerable. It therefore has retraced today to around $77, with volumes also decreasing suggesting it may sideways.
Besides Sean Spicer’s alleged tweet, there isn’t much else going on in bitcoin. The currency hasn’t attracted any new project for quite some time with some businesses and users leaving due to high fees and delays of payments for hours to days.
The currency is further going through some liquidity problems because Bitfinex has stopped fiat deposits and withdrawals while Chinese exchanges have stopped bitcoin deposits and withdrawals. That has led to bitcoin trading at $100 premium for Bitfinex users, while it’s at some $200 discount for Chinese users.
Nonetheless it still goes up, perhaps because it’s the best known digital currency as shown by the discussions over whether Sean Spicer did or did not tweet a bitcoin identification text. That means the currency has probably reached the household brand level as far as recognition is concerned.
Within this space, however, the currency is seen as somewhat outdated, slow and expensive. It lacks much innovation, a clear roadmap of where it’s going, with its community consumed by in-fighting.
Much of the non-price related attention, therefore, has gone to ethereum, a somewhat new platform which does everything bitcoin can while also allowing codable money functionalities through smart contracts.