On 9 January 2017, 1 unit of Bitcoin (BTC) was trading at $903.08. Fast-forward to January 9, 2018, that same unit of Bitcoin (BTC) is trading at $14,709.50. This does not take into account the unprecedented rise towards $19,468.70 on Sunday, December 17, 2017. Bitcoin, like many other leading cryptocurrencies has enjoyed surging levels of popularity in recent months, owing to the widespread adoption of this new blockchain technology in international markets.

Barely a year ago, Bitcoin accounted for approximately 70% – 80% of all cryptocurrency trading activity by market capitalization. Today, the market capitalization of BTC is $245.218 billion. The total supply of this digital currency will be capped at 21 million BTC based on an algorithmic function. The current circulating supply is 16,791,775 BTC. While Bitcoin remains the dominant cryptocurrency at 34.26%, it is rapidly losing market share to other digital currencies.

Why Is Digital Currency Experiencing Massive Growth?

There are many reasons why digital currency, notably Bitcoin and others is growing so quickly in 2017/18. For starters, the global community has finally cottoned on to the value of blockchain technology and the 1,394+ cryptocurrencies currently in operation across 7,693 markets. Most of the solid growth we are seeing in Bitcoin, Ethereum, and Ripple is due to massive interest in South Korea, North Korea, Japan, Hong Kong, Singapore and the like.

Asia has taken the lead in digital currency trading and adoption, and this reflects in the bullish price movements we are witnessing. Clients around the world are taking to digital currency trading, notably Bitcoin in their droves. Multiple trading options are available in the form of actual purchases of digital currency investments, or CFD trading (contracts for difference) of these options.

Prospect for Bitcoin Trading in 2018

Bitcoin trading got a welcome boost recently from news that PayPal co-founder Peter Thiel’s Investor Fund had ploughed an estimated $15 million to $20 million into Bitcoin. News of this helped to renew investor interest in Bitcoin which has suffered somewhat in recent weeks since the December 2017 high. Digital currency like Bitcoin is subject to extreme volatility, and prices can rise or fall several thousand dollars in a day.

Between January 3 and January 9, 2018, Bitcoin fluctuated between $13,942 and $17,528, and has settled in the median trading range between $14,400 and $15,600. At its current price range, Bitcoin maintains its status as the dominant cryptocurrency in terms of market share, market capitalization, and price. However, several other Altcoin options are snapping at Bitcoin’s heels, notably Ethereum, Ripple, Bitcoin Cash, Cardano, NEM, Litecoin, Stellar, IOTA and Tron.

Olsson Capital trading strategist, Hamish Burns is confident that the digital currency boom will continue unabated in 2018.

We are talking about something entirely different. This is not a Tulip scenario at all. Sure, prices are going to rise and fall and market corrections are going to take place. However, Bitcoin and the cryptocurrency phenomenon is about more than a passing fad. We are in the midst of the next Google/Facebook paradigm and Bitcoin is at the forefront of this new technology. There are a few important points to remember when trading Bitcoin CFDs, notably the fact that Bitcoin is not subject to inflation as we understand it with fiat currency.

For starters, the total volume of Bitcoin will be capped at 21 million circulating supply in 100+ years. This means that the primary factor driving the price of Bitcoin is demand/supply. In the absence of government regulation or central bank intervention, we can expect market dynamics to continue finding a fair market price for these digital currency options. With CFD trading, clients get to speculate on price movements without taking possession of the digital currency options. This is certainly an exciting time for Bitcoin enthusiasts.’