The digital currency Bitcoin has emerged as a fascinating phenomenon of the financial markets. Public interests have reached high levels despite the controversy that it is not issued by any central authority. Bitcoin is becoming the leading currency because of its advantages over the standard fiat currencies i.e. US dollar, the Euro, Japanese Yen etc. Controlled algorithm of the currency creation and an informational transparency of its transactions are making this currency a hit for all times.
As a payment, Bitcoin is accepted a bit more frequently and it’s the reason of its rising prices. Currently this digital currency is being traded around $1,186. From it all time high price in 2013 which was ~$1,165, it is about $20 more now. Few months after one of the largest Bitcoin exchanges stopped working, the price of the currency to fall to half. Since then the price has fluctuated dramatically.
Bitcoin become stable two years ago around $250. The speculations were that the digital currency will never be able to cross $1,000. After that the rise of price of the Bitcoin remained pretty stabilized. Last year, at this moment the trading of Bitcoin was at~$425, it was $584 six months ago, at $736 three months ago and at $885 just a month ago.
One reason for the increase of the Bitcoin price is the performance of the stock market which is rising rapidly since President Trump has been elected. In the last week NASDAQ, Dow, Russel, and S&P 500 have set all times high. Bitcoin is transitioning away from being just a substitute asset and is converting into a more prevalent form of payment for businesses.
Another reason for the Bitcoin’s price rise is the confirmation of Mike Mulvaney becoming the director of office of Management and Budget. He is an advocate of this digital currency and was the first member of Congress to accept Bitcoin donations. He also helped launching Blockchain Caucus to improve policy surrounding crypto-currency.
Bitcoin community and Wall Street are another major reason for the price rise. Approving of the Winklevoss Bitcoin ETF will make it the first Bitcoin ETF in the US market. For average investors, it would provide great help. So speculating it to that extent, the price is rising for the currency.
But a strong and lasting relationship cannot be built with Bitcoin price as it changes overtime. Therefore thoughtful decisions should be made before investing for this crypto-currency.
Via: Tech Crunch