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Bitcoin hits a record high near $3,500 ahead of a big change in its software

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Reuters/Bobby Yip

Bitcoin‘s foray into record territory continued Tuesday as the cryptocurrency reached nearly $3,500 a coin. Early buying propelled bitcoin to a high of $3,486 before sellers managed to push it back down to the unchanged line near $3,390.

The gain came ahead of a big change in bitcoin’s network.

On Tuesday, bitcoin’s blockchain network will begin adopting new software called Segregated Witness, or SegWit.

“SegWit is a clever solution that essentially increases transaction capacity,” according to Aaron Lasher, the chief marketing officer of Breadwallet, a bitcoin technology company.

The software was devised years ago as a solution to the cryptocurrency’s scaling problem, which divided bitcoin power brokers for years and led to a split on August 1.

Investors were virtually unfazed by the split, which resulted in the creation of a clone coin called bitcoin cash. Selling on that day dropped bitcoin to a low of $2,643. But it has rallied by about 30% since its August 1 bottom.

As for how high bitcoin can go, Sheba Jafari, the head of technical strategy at Goldman Sachs, said …

Read more about it here.