If you are a bitcoin investor, you’ll be glad to hear that prices are going back up again! In fact, the currency is over 5,000 dollars in value again after a dramatic rise of 20%, and experts from Lucrotrade believe that it will reach over 20,000 dollars this year! Here’s why the currency is becoming more valuable again.
Bitcoin Is Extremely Widely Known
After the most recent major price jump last year, the value of the currency has stayed fairly high due to media attention. The increase in the price of bitcoin in recent times has been driving more media attention to the cryptocurrency, and this is likely to continue to drive price increases.
The fact that mainstream media is discussing bitcoin yet again has a powerful effect on the price, and mainstream media has been discussing the cryptocurrency during the latest rally. That’s because many people put far more trust in major outlets, such as Bloomberg, than most other outlets. This has led to people investing in cryptocurrency who otherwise wouldn’t be likely to, and this has allowed the price rally to continue for longer.
There’s Economic Uncertainty In The Modern Era
Due to political and social factors, the direction that the economy is headed in is fairly uncertain, and this has caused some people to turn to bitcoin in recent times. In fact, some economists believe that there will be a substantial recession during 2019, and this has likely led more people to begin to take an interest in bitcoin.
An Anonymous Buyer
Recently, an anonymous buyer has purchased a substantial amount of cryptocurrency, and this has caused prices to rise. Accoriding to Lucrotrade, this anonymous buyer has purchased 20,000 bitcoin, and this is equivalent to over 100,000,000 dollars!
Other Cryptocurrencies Are Gaining Value
Bitcoin is no longer the only game in town, and there are numerous other cryptocurrencies out there that you can choose. Here are some examples of other cryptocurrencies that can have an influence on the price of bitcoin and vice versa:
1. Ethereum
Ethereum is considered closely related to bitcoin in terms of price, and it is considered to be the second biggest cryptocurrency. Ethereum prices have risen in recent times, and this is likely to play a factor in the bitcoin price going up.
2. Litecoin
David Johnson from Lucrotrade explains, that Litecoin is fairly closely connected to bitcoin in terms of price fluctuations, and the price of this cryptocurrency appears to be increasing.
3. Ripple’s XRP
A cryptocurrency called XRP has increased in price, and this cryptocurrency is thought to have a significant connection to the price of bitcoin.
Bad News On Brexit
The government of Britain appears to be failing to successfully follow through on Brexit, and this appears to be increasing interest in bitcoin. This unexpected development has driven an increase in bitcoin purchases within the UK and other regions of Europe.
Increased Attention To Forks In The Chain
In recent times, there have been more “forks in the chain” when it comes to Bitcoin, and these “forks” have driven an increase in prices. One example of such a fork is Bitcoin cash, and this fork has gotten a lot of attention lately. This form of the cryptocurrency makes it possible to easily send cryptocurrencies from one individual to another.
Multiple Factors Appear To Be Playing A Role
While many people have pointed to the anonymous investor, it’s likely that there are numerous factors that play a role. While the factors that are listed here appear to play a major role, it is likely that there are other factors as well, and some of these factors may not have been uncovered yet. In fact, investors are still debating what is driving the changes in Bitcoin’s price, and it’s likely that more theories on what’s driving the price increase will be discussed in the future.
