Bitcoin is experiencing exponential growth, reaching a new all time high in the history of the digital currency.
On a few Bitcoin exchanges, the price topped $5000 USD per unit (per bitcoin). As pictured in the price chart below, you can see the extreme price spike as Bitcoin has topped $5000 on the exchanges OKCoin, LakeBTC, The Rock Trading, and CEX.IO. Not all exchanges topped $5000 which kept the global price average down just below the price point.
Some known factors that we are aware of that may have created upward price pressure globally is recently South Korea legalized Bitcoin international transfer services, creating a demand for Bitcoin and also Bitcoin Cash. In other parts of the world where local economies are crashing and their currency is devalued, it seems to also be creating a demand for a store of value in other more stable currencies such as Bitcoin.
Famous entrepreneur Kim Dotcom also made headlines this week with his new Bitcoin payment system, and Bitcoin also appears to be a popular investment for middle-class Americans, according to a new study.
As always, it’s extremely hard to pin down precisely the reason for the price spike creating this gigantic bull run. There are many factors that go into it such as market acceptance, sentiment, changes, media, certainty, world politics, and more.
Just as quickly as the price sky rocketed, it quickly dropped down to $4500. The most plausible explanation is there were a lot speculators who had their sell orders set for $5000 trying to cash in; once the price started hitting, their market orders were triggered.
Although the price dropped down several hundred dollars after hitting $5000, looking over the past 90 days Bitcoin is still experiencing a bull run, up ~$2000 since early June.
Things may not stay all peachy price wise as we head into November, where a major change within the Bitcoin ecosystem will be occurring around November 20th (block height 494784) when SegWit2x launches and a potential split may cause the prices to go down (or up!) depending on market reactions.