Bitcoin price keeps undergoing fluctuations in recent days. While yesterday the price surpassed $750 and reached its peak of $774.96 at 02:49 GMT, now it has fallen to $720. However, most experts in bitcoin community express confidence that the retreat won’t be for long and bitcoin price will continue its upward movement in the coming weeks.
Indeed, bitcoin has been showing sustainable surge recently. In the beginning of the week, the cryptocurrency sold for $691. Analysts enumerate several possible reasons for such impressive bitcoin run.
Most experts share the opinion that the closer halving date of July 10 is, the more bitcoin price will increase. According to the initial idea of Satoshi Nakamoto, bitcoin reward must be halved once in for years in order to keep a lid on inflation.
“The halving of the supply of Bitcoin is attracting many retail investors,” said Jack C. Liu, chief strategy officer at OKCoin. “More broadly, we continue to see follow-through from the blockchain hype cycle translating to interest in bitcoin the asset.” He underlined that blockchain, or to be more exact, the increased attention blockchain has been getting recently, has boosted bitcoin’s legitimacy.
Around 95 percent of all bitcoin trading is done via Chinese exchanges. Yuan is undergoing a weakening stage now, which resulted in such a noticeable rebound in bitcoin price. Yuan has just fallen the most in two months on Monday in Shanghai.
According to The Merkle, one of the possible reasons for bitcoin price increase is the possibility of Brexit (withdrawal of the United Kingdom from the European Union). The decision on the United Kingdom will be made on June 23 when voters will decide the country’s future.
There are fears that such a bitcoin price surge can be connected with trading bots. Bitcoin society has already witnessed a similar situation after the Mt. Gox collapse several years ago, when a trading bot pushed the bitcoin price above US$1,000. Afterwards, the price was undergoing sustainable decline during several months.
Some analysts estimate recent fluctuation as rather predictable especially as the price attempts to harden support in a new range. Founder of derivatives trading platform Magnr Joe Lee said “It is very critical for investors to know that markets are always following cycles. Regardless of the kind of asset, if a price rises too quickly, the safe notion is that a correction will take place in the short term.”
The US District Court in Connecticut is now considering a civil lawsuit filed against cryptocurrency mining company GAW Miners, ZenMiner, CEO Homero Joshua Garza and investor Stuart Fraser. The company is informed to have purposefully misled customers about its operations, concerning its mining services and the cryptocurrency paycoin used to release.