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The Bitcoin price reaches a new record high of $ 7,598; Why is the market so optimistic?

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Again, the price of bitcoin hit a new record to $ 7,598 on November 5, as the market continues to be optimistic about the medium-term performance of bitcoin.

Rapid adoption in large areas

In Japan and South Korea, two regions of Asia known to have extremely conservative investors and traders experienced an exponential increase in the demand for bitcoin from local traders. In an interview with Nathaniel Poppers of the New York Times in October, Tony Lyu, founder and CEO of Korbit, pointed out that once people are invested in South Korea, they encourage others to join the "party" .

"The word really spreads very quickly in Korea, once people are invested, they want everyone to join the party, there was a huge, almost communal movement around that, "said Lyu

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Over the past two weeks, Japan and South Korea have seen a significant portion of traditional investors in the traditional financial industry allocate their funds to bitcoin, given the increasing liquidity of bitcoin and the cryptocurrency market in general. ]

More precisely, in South Korea, the popularity of offline exchanges of Bithumb and Coinone, the two largest cryptocurrency exchanges in the country, began to grow, as investors did not strong technical knowledge or expertise in bitcoin. person-to-person assistance for the purchase, trade, storage and management of bitcoin.

As a 53-year-old bitcoin investor stated:

"Due to the emergence of physical cryptocurrency trading and off-line customer service operations initiated by CoinoneBlocks and Bithumb, many South Korean investors are rushing to sell their shares and holdings in Public companies to invest in cryptocourses.From the beginning of 2017, the demand for bitcoin has increased significantly and investors have been able to boost confidence in the cryptocurrency trading market through off-the-shelf exchanges. line. "

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Japan and the United States

Japan has always been the determining factor in the price of bitcoin, particularly in its new highs and strong rallies. Japan is one of the few countries to have adopted bitcoin as a currency and payment method, using bitcoin to conduct transactions in hotels, online ecommerce platforms, retailers and restaurants.

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Today, Japan's largest retailer of Bic Camera, the Cheap Capsule hotel chain, the major airline Peach and the largest network operator Remixpoint accept bitcoin as its motto for all of their operations, services and products.

Investors in the United States are also optimistic about the launch of a bitcoin futures market by CME and CBOE, the two largest exchanges of options in the country and in the US. foreign. The bitcoin integration of CME is expected to offer immense liquidity for institutional and retail investors, who have sought to allocate their "money on the sidelines" in bitcoin for many months.

The overwhelming performance of major regions like Japan and South Korea, as well as the integration of Bitcoin by major financial institutions in the United States, contributed to the recent surge in prices bitcoin.

In the medium term, early in 2018, analysts expect the price of bitcoin to exceed $ 10,000. But some strategists, including Wall Street analyst Tom Lee of Fundstrat, advised investors to be cautious because the price of bitcoin went from $ 3,300 to $ 7,400 just last month, and a sudden rise in bitcoin could result in a correction.

Image from Shutterstock,

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