By
Steve Muchoki
April 23rd, 2024
Bitcoin price has increased by 10% since last week and now makes up $581.
Bitcoin community has been observing an incredible burst in the cryptocurrency price starting from the last week.
The bitcoin price soared to its highest in almost two years due to the increased demand in China and resulted in bitcoin rising to more than $500 per unit (as of June 2). The current price makes up $581, increased by about 10% from last week.
Such a significant impact from China is explained rather easily – around 95 percent of all bitcoin trading is done via Chinese exchanges. Thus, any increase in demand from this country has a great impact on bitcoin operating all over the world.
Experts marked one more possible reason for such bitcoin price burst – July 10. If this date means nothing to you, let us explain. Bitcoin relies on “mining” computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. The first computer to succeed and solve the puzzle gets a reward of 25 new bitcoins, worth around $13,500. According to the initial idea of Satoshi Nakamoto, bitcoin’s creator, the reward must be halved once in four years, in order to keep a lid on inflation. And guess what the next time to halve is? Right, it is July 10.
Charles Hayter, CEO of London-based digital currency analysis website CryptoCompare, said: “Bitcoin is days away from a reduction in its block reward, which will halve the daily supply coming onto the market. Bitcoin is emerging battle-hardened after a period of divisive governance issues and politics. Although not fully laid to rest, calmer waters look to be on the horizon as consensus on how to scale the network is appearing.”
Recent price fluctuations made bitcoin one of the most exciting financial instruments that enables its users to earn from constantly rising prices. If bitcoin price continues to grow, we can expect it to reach the $600 mark next week.
Now bitcoin enthusiasts enjoy the increasing bitcoin price trend as it can positively influence the liquidity on the Bitcoin network. Traders and investors will evaluate that bitcoin price climbs further upwards and will stop trading more bitcoin with the intention of making profits. The more interested in bitcoin people get, the more chances to further strengthen the price of the cryptocurrency are.
Current capitalization of all bitcoins circulating is just over $9 billion again, the first time since February 2014. It is necessary to mention that the bitcoin price by no means rose at the expense of over cryptocurrencies. The total market capitalization of all cryptoassets makes up now $11 billion with the chief bitcoin’s competitor, Ethereum, having $1.1 billion. It is followed by Litecoin at $221 million, Ripple at $202 million, the DAO at $150 million and Dash at $50 million.
The success of bitcoin is obviously while comparing figures from the previous and current years. As of May 29th, 2015 bitcoin cost $225 and the total market cap of Bitcoin was just $3.2 billion.