Bitcoin has achieved what many thought impossible just months ago — doubling in price from roughly $8,000 to nearly $18,000 in a mere two-week period. On December 7, 2017, the world’s largest cryptocurrency was trading at $17,899 according to CoinMarketCap data, pushing its market capitalization to an astonishing $299.4 billion and drawing comparisons to some of the most explosive asset bubbles in financial history.
TL;DR
- Bitcoin doubled from ~$8,000 to $17,900 in just two weeks
- Coinbase experienced major outages due to “record high traffic”
- Price varied by over $2,000 across major exchanges
- BTC market cap reached $299.4 billion, approaching $300 billion
- Gemini suspended BTC and ETH withdrawals as networks clogged
A Rally Without Precedent
The speed of Bitcoin’s ascent has left even seasoned cryptocurrency veterans stunned. From trading below $8,000 just fourteen days prior, Bitcoin surged past $10,000, $12,000, $15,000, and $17,000 in rapid succession. The CoinMarketCap price index placed Bitcoin at $17,899.65 on December 7, representing a staggering 24.89% gain in just 24 hours and an eye-watering 79.70% increase over the previous seven days.
The rally has been fueled by a combination of factors: growing mainstream acceptance, the launch of Bitcoin futures by the CME Group scheduled for December 18, increased institutional interest from Wall Street, and a flood of retail investors rushing to buy Bitcoin through platforms like Coinbase. The fear of missing out — commonly referred to as FOMO — has become a powerful self-reinforcing force.
Coinbase Overwhelmed as New Users Flood In
The price surge has placed enormous strain on cryptocurrency exchanges. Coinbase, the most popular platform for buying Bitcoin in the United States, reported major service disruptions on December 7 due to what the company described as “record high traffic.” Users experienced slow load times, failed transactions, and intermittent outages throughout the day.
The exchange’s trading platform, GDAX, saw Bitcoin prices spike to nearly $19,000 at one point — significantly higher than prices on other exchanges. This premium reflected the influx of new retail buyers entering through Coinbase, many of whom were purchasing Bitcoin for the first time and willing to pay above-market prices due to limited platform options.
Exchange Price Gaps Expose Market Fragmentation
One of the most concerning developments on December 7 was the massive price discrepancy between exchanges. While GDAX showed Bitcoin approaching $19,000, Bitfinex had the price at $15,499 — a gap of more than $3,000. The CoinDesk Bitcoin Price Index, which averages across multiple exchanges, placed the price around $16,000.
These gaps would normally be closed quickly by arbitrage traders who buy on cheaper exchanges and sell on more expensive ones. However, severe congestion on both the Bitcoin and Ethereum networks made transferring funds between exchanges impractical. Gemini, the New York-based exchange founded by the Winklevoss twins, took the extraordinary step of temporarily suspending Bitcoin and Ethereum withdrawals entirely because the probability of transactions confirming on the congested blockchains was so low.
The Broader Crypto Market in Context
Bitcoin’s surge has been the dominant story, but the broader cryptocurrency market has also been experiencing significant movement. Ethereum held steady at $434.41, with a market cap of $41.8 billion. Bitcoin Cash, the August 2017 fork of Bitcoin, was trading at $1,330.93 with a $22.4 billion market cap. IOTA, which had been on a massive rally of its own, was priced at $4.14 with a $11.5 billion market cap — representing a remarkable 220.98% seven-day gain. XRP, meanwhile, was trading at just $0.22.
Why This Matters
The events of December 7, 2017 represent a critical inflection point for Bitcoin and the broader cryptocurrency market. The rapid price appreciation, combined with infrastructure failures at major exchanges and network congestion on the blockchain itself, raises fundamental questions about Bitcoin’s readiness for mainstream adoption. The approaching launch of CME Bitcoin futures — backed by institutional infrastructure — signals growing Wall Street acceptance, but the fragmentation of prices across exchanges and the inability to reliably move funds between platforms suggests the market is not yet mature enough to support the capital flows it is attracting. Whether this is the beginning of a new financial paradigm or a bubble approaching its breaking point remains the defining question of the cryptocurrency era.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.