Bitcoin price created a new all-time high today at $5862 which brought in a sigh of relief among cryptocurrency enthusiasts. Since its September high of $5000, things have been going haywire in the cryptocurrency front which became solidified after the infamous comment made by Jamie Dimon, the CEO of J.P. Morgan Chase who imparted the title of “fraud” to Bitcoins. Jordarn Belfort, the real wolf of Wall Street also supported Jamie Dimon on Bitcoin being termed as fraud. Not only Bitcoins, but whole of the cryptocurrency market was also hit when these famous financial personalities took on Bitcoin. Also, the recent ban of ICO by China and South Korea also disturbed the Bitcoin and cryptocurrency markets.
Since the mid-September low of $2985.24 and after all of the global negativity, Bitcoin price has experienced a substantial hike of more than 90%. But why the Bitcoin price is rising even after a lot of criticism coming from east and west? KryptoMoney.com discusses the probable causes leading to the increase in Bitcoin price.
The Bitcoin Hard Fork that happened on August 1 created a new version of Bitcoin called Bitcoin Cash. People holding Bitcoin in their wallets received free equivalent number of Bitcoin Cash. Price of Bitcoin Cash went high upto around $900, which was like free money for those who just held their Bitcoins in their wallet. Same is the case for Bitcoin Gold. Users holding their Bitcoins in the wallets of which they have access to their private keys, will receive the equivalent number of Bitcoin Gold coins for free. Thus, it is increasing the demand for Bitcoin as well as investors are shifting from altcoin to bitcoin, causing a downfall in altcoin market.
Bitcoin Gold which has been designed keeping in mind the mining challenges will be launched on 25th October. A second round of Segregation Witness is scheduled on 18th November which will bring upon an alternative Bitcoin version.
Just like average investors, Wall Street honchos are also waking up to the Bitcoin phenomenon. Mike Novogratz, the co-founder of Fortress Investment Trust, also being referred to as the “Hedge Fund Legend” has accumulated funds worth $500 million for investing in cryptocurrency sector. He recently shared his thoughts that Bitcoin price may cross the $10,000 value within six to ten months during a recent interview with CNBC.
Goldman Sachs Group is also on the lookout for new trading platforms centered around cryptocurrencies such as Bitcoin and Ethereum.
September was a crucial month for Bitcoin and other cryptocurrencies . Banning of ICO and restricting Bitcoin trading in China shocked investors around the globe. This caused a severe drop in Bitcoin price as well as altcoins. Amidst much negativity comes an aura of hope following a comment made by the CryptoCompare CEO and founder Charles Hayter.
Hayter indicated that China may issue licensing of digital-currency exchanges for reopening them after the ban.
If rumours are to be believed than Amazon.com will soon be accepting Bitcoin as a payment medium. According to Seeking Alpha blog, Amazon may announce the acceptance of Bitcoin as payment when it reports the quarterly results on October 26th . This might propel other big-shots such as Alibaba Group Holding Ltd. to walk the same path.
Also Read: Top Global Companies accepting Bitcoin
And last but certainly not the least, Fear Of Missing Out (FOMO). Various news and articles are coming out that due to the above mentioned as well as some more global reasons, Bitcoin prices might increase to new heights. This attracting more investors and thus the demand for the world’s first decentralized peer-to-peer cryptocurrency i.e, Bitcoin is increasing.
The above 5 points may be the driving forces, but some more other factors do exists. Here is a list of some more reasons why Bitcoin price is increasing. Do give it a read.
Also, One of the most important point to watch out for is the US-North Korea stress.
Tensions between US and North Korea, which are creating war like situations may also increase the price of Bitcoin, if war happens. Remember, when North Korea fired a test missile over Japan?? The Bitcoin price had a jump of $300 on a single day, for the action taken by North Korea.
This happened because Bitcoin is now somewhat considered as a safe haven asset and in times of war, Bitcoin demand may increase causing rise in prices.
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