Bitcoin price rose to $450 on November 13th, 2014 (06:40 UTC time), an upward shift by 29% since October, when the prices fell to $318.
The last time when the prices were above $400 mark was in late September. At the time of writing (UTC 15:16) the BTC price was around $434.
The bitcoin price recovery has positively influenced other cryptocurrency markets. Litecoin has increased by 7% since Tuesday, while dogecoin grew in value by over 8%.
BitAngels co-founder Michael Terpin commented: “Bitcoin’s price is up more than 25 percent since its brief foray to under $300 at the start of October.”
“It’s increasingly clear in this current run-up that bitcoin is oversold, with a great many more investors bullish long term and seeking the right entry point than short-term traders running out of coins to sell.
“I predicted during Money 20/20 that we could go as high as $600 by year’s end and I’m sticking to that prediction,” he said.
Bitcoin Recovery Since October
During the first nine months of 2014, the bitcoin prices hovered at about $400 mark. Starting decreasing from July, bitcoin fell to its lowest level of $318 in October. By the mid-October the price recovered and reached $397, but within the next two weeks the prices dropped to about $350.
In November, the prices of digital currency remained at the average rate of $322 before a slight recovery on November 9th. After a brief decline on November 11th, the bitcoin price started increasing and on November 12th surpassed the $400 level.
Bitcoin Price Future Hike
The upsurge coincides with the recent closure of illegal websites on the Tor network, including the Silk Road 2.0 marketplace, and the growth of trade volumes. Moreover, the latest and the largest bitcoin’s surge was registered after the FBI closed the original Silk Road.
However, financial writer Dominic Frisby said: “You’d have thought (the dark site’s) closure would have affected bitcoin negatively. But that hasn’t happened.”
“Maybe it’s a case of sell the rumour, buy the news. People talk about the Industrial Revolution or the Agricultural Revolution. We are at the beginning of the Financial Revolution,” he added.
Other bitcoin community members suggest the celebration of ‘Singles Day’ in China is among the factors that led to the price surge, as it is known to generate a lot of e-commerce transactions.
Blockchain registered a steady growth of daily transaction volumes, which is not followed by an increase in transactions fees. It indicates the larger amount of non-commercial transactions occur.