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This article is written by Anupam Varshney. Anupam is co-founder of Bitcoinprice.com and has covered the Bitcoin situation in various countries, including India, South Africa and Canada.
Factors behind the unprecedented gathering of Bitcoin
With a price increase of $ 5,732 on October 28 to $ 7,457 on November 8, Bitcoin has definitely attracted media attention last week, given its unprecedented bullish recovery.
People who doubt bitcoin in the world are left puzzled by recent price increases. Following a host of negative comments from industry leaders, central banks and governments, the price still managed to increase. Many are now wondering why the market is so optimistic?
In this article, we will try to explain some of the major factors behind the recent surge in the prices of digital currency.
- China. The spread of rumors
Not so long ago, China decided to crack down on digital currency trading by forcing them to suspend their services. This led to the disappearance of China as the world’s largest trading country. As expected, most exchanges operating on its territory advised users to withdraw their funds and stopped providing exchange services.
The volumes traded then moved on to other countries, such as South Korea, Singapore and Japan, thanks to their friendly bitcoin regulations for businesses. However, recent reports have indicated that China may be preparing to re-authorize trade on its territory, on tighter regulation. Although there is no official word on the issue from government officials, many believe that this may have been one of the factors behind the recent rally.
- The CME Group Introduces Bitcoin Futures
Having the World’s Largest Derivative Operator Announce That They Are Getting Ready to Start Bitcoin Futures is Definitively great news. This would bring institutionalized investors into the world of digital currencies and, as a result, increase the capital invested in Bitcoin.
Futures settled in cash will facilitate the development of more complex financial products based on digital currency. This also has the potential to facilitate mass adoption and ultimately lead to the approval of Bitcoin ETFs.
- SegWit2x Hard Fork
According to some analysts, the upcoming SegWit2x rigid fork is one of the main reasons why Bitcoin reaches new heights. The theory is that, investors and traders are not only buying more Bitcoin, but also converting their altcoins (such as Ethereum Litecoin, Monero) into Bitcoin, in order to Get parts S2X airdrop & # 39; Free.
People who oppose SegWit2x on a hard fork claim that the S2X supporters, who are mostly miners and personalities, are the ones who buy ] a lot of bitcoin. According to critics, when exchanges allow deposits and give them 2x and 1x coins, they will dump 1x as much as they can. By doing this, the 2x price will increase.
These two scenarios led to a significant increase in trading volumes, which pushed up the price of bitcoin.
- Increasing Market Capitalization of Initial Coins
The ICO craze, which allows start-ups to conduct crowdfunding campaigns that benefit them, customers and investors, has allowed to invest millions of dollars. dollars in a multitude of chips based on the blockchain.
Although this does not directly affect Bitcoin per se, the more attention the digital currencies receive, the more popular cryptocurrency becomes popular. In return, more popularity means more investment, which, of course, means a higher price.
Based on these aspects, what are your thoughts on the factors behind the unprecedented gathering of Bitcoin?