With the price of Bitcoin reaching well over $1500 USD, up over $200 in just the past few days, many are scratching their heads as to why the sudden price spike?
Here are the top reasons going around why the price has jumped up recently. Of course nobody knows for certain the exact reason, and logically it’s more than likely a combination of all reasons which has driven the price up. Some of the reasons below may not actually be completely accurate, as some are just speculation.
Japan is leading the rally. Analyst Alex Sunnarborg pointed to a spike in global trading volume, especially from Japan and its bitFlyer Bitcoin exchange. This is in part due to the media frenzy back in April in Japan when Bic Camera started accepting bitcoin in stores.
Pictured above is the Bitcoin market cap, which has topped $25 billion this week.
Institutional investors are getting into Bitcoin. Just prior to the explosion in price, Bitcoin exchange Gemini which is operated by the Winklevoss twins, experienced a huge spike in trading volume. Some are speculating that institutional investors are getting in on the action and helping to drive the price. Gemini has been targeting institutional investors for a while now and it’s possible that they were able to score big with new money getting into the digital currency.
FOMO. The Fear Of Missing Out often brings in new customers to the market who hear about the price spike and want to buy. It also brings in traders who want to speculate on the price.
The Sean Spicer conspiracy theory. There was a rumor this week that the President Trump’s Press Secretary Sean Spicer tweeted out a Bitcoin address. This helped fuel the fire when it came to the overall media hype this week surrounding the price. The rumor was quickly debunked, however, it created additional press.
Bitfinex is propping up the price. When the Bitcoin exchange started experiencing fiat banking issues, it created a lot of buying pressure on the exchange which has spilled all over the market.
The Securities and Exchange Commission. When the news broke that the Securities and Exchange Commission (SEC) will review and reconsider the Winklevoss ETF rejection, it more than likely drummed up renewed interest in the market.
Crumbling economies. In countries where their economies and fiat backed money is turning to dust such as Venezeula, people are looking for alternative currencies. This is where Bitcoin has been able to shine. As a store of value, people in struggling economic countries have been able to invest in Bitcoin to move their money out of the country and have a more stable currency.
Australian tech billionaire bets on Bitcoin. Software giant Atlassian’s co-founder Mike Cannon-Brookes hinted that he has been a long-term holder of bitcoin. In a series of tweets this week, the billionaire noted how $10,000 worth of BTC bought in 2010 was now worth around $146 million.