All over the world, Bitcoin investors are in celebratory moods as the virtual currency continues driving upward. This is nevertheless the case after some bullish cryptocurrency analysts predicted that the digital currency – which reached a high of $19,500 in December 2017 – could potentially hit $20,000 in early 2018. Well, they wished all they wanted, but that never happened. In fact, the price crashed unexpectedly to about $6,000, leading to widespread losses.
Before we go over to the likely factors behind its rise, let’s look at some market figures. After breaking at $6,000 on July 12, the digital currency king took off to $6,185 and later settled at $6,662. But that’s not all, according to figures available on Bloomberg, Bitcoin rose to around $8,287 while writing this article.
What are the driving forces behind Bitcoin’s rise?
There are several factors analysts believe to be the propellants behind Bitcoin’s recent growth. But looking at the explanations, one begins to wonder whether they are true or not.
However, let’s look at them one after another.
- CFA Designation
The first is the decision of finance membership institute, Chattered Financial Analysts (CFA), to include blockchain and cryptocurrency to its 3-level membership curriculum I and II in 2019. The body also announced that the materials would be available in August. This is serious, given that the group has always been perceived as conservative.
- Banks weighing on crypto assets
The CEO of asset manager BlackRock Inc, Larry Fink, said that the firm has assembled some of the best brains in blockchain technology and virtual currencies to examine the opportunities in the innovative technology, but he nonetheless cautioned that there was no massive investor demand yet. For many analysts, this is an endorsement of cryptos by the chief executive of the world’s asset manager.
- The potential for increase in Bitcoin ETF
Well, bitcoin ETF has increased once again. This school of thought believes that increase in bitcoin ETF usually results in a similar rise of Bitcoin prices in the cryptocurrency market. One expert thinks that a Bitcoin ETF eliminates the fear of missing out, thus increasing Bitcoin prices.
- Positive interests shown by companies
Another source says that the recent interests shown by multinational companies, governments and central banks could be a factor. But given that their comments have been more of cautionary than expression of interest, one wonders if this could be the cause.
In a speculative market, it’s important for the traders to know the factors behind Bitcoin’s recent rise for improved subsequent trading. Although the cause could just a factor or a wave of events, whichever it is, the fact remains that bulls are having a great time due to the coin’s positive run.