If you’ve been following recent digital currency news, then chances are that you’ve heard that bitcoin is going on a bull rampage, breaking its all-time highs almost every day. In fact, the digital currency is currently trading above $1,800, and chances are that it will soon hit the $1,900 benchmark, if the trend continues this way, in a couple of days.
Economic analysts throughout the world are both excited for this tremendous growth in value, but also quite worried, considering the fact that it may be the direct sign of a bubble about to break on the industry. In this article, we will analyse the facts behind this massive increase in value, and try to predict what’s next for bitcoin.
To kick things off, early adopters of the digital currency are likely celebrating the value growth, whereas those who were getting ready to invest in bitcoin are not very happy with their lack of speed and commitment. This is mostly due to the fact that in 2017 alone, bitcoin has grown by over 85% in value, through a steady growth, and finally managed to top $1,800, thus clearly showcasing that it is on its way to breaking $2,000 fairly soon, in case this trend continues.
A while ago, the success of bitcoin was mostly classed by analysts due to the uncertainty present in the markets, following the US Presidential Elections last year. However, this explanation alone cannot back the massive growth that is still continuing today. Not only this, but the Securities Exchange Commission in the United States, still hasn’t decided whether they will approve the bitcoin ETF. So, why is bitcoin still growing?
Well, there are a good number of reasons. Firstly, the attitude of governments towards the digital currency is quickly improving, as in the last months, we’ve seen numerous countries taking the appropriate steps towards formally recognizing bitcoin and creating regulation that would prevent abuse on the market. With this in mind, Russia announced that it will soon recognize bitcoin, Australia is removing bitcoin transaction taxes, and Japan is also formally recognizing it and creating regulation. Regardless, there are also countries looking to restrict the use of bitcoin, such as China, which restricted its trade, by asking exchanges to stop trading bitcoin to the Chinese Yuan and vice-versa until certain criteria are not filled.
Out of these reasons, the biggest may be the Japanese adoption of bitcoin, as it is currently estimated that around 260,000 stores throughout the country now accept the digital currency.
However, we may be facing a bubble that is about to break, thus causing a price fall, in case the cryptocurrency fails to gain more traction as it is expected. This isn’t enough to advice anyone to sell right now, but it’s an aspect worth keeping in mind, as the price remains volatile and changes can take place on the market.
Based on everything that has been outlined so far, what do you personally think about Bitcoin’s recent bullish growth on the market? Let us know your thoughts in the comment section below.