At the time of publication of this article, Bitcoin price hit $300, according to the Coinspeaker Bitcoin Price Index. So far, the Bitcoin community was observing a steady climb from the $260 towards $300 over the past two weeks. Well, during this period of time, Bitcoin price has been doing not bad at all. Thanks to various reasons, the value of the most discussed cryptocurrency has managed to keep its head above the $260 mark.
Last week, the largest Chinese bitcoin trading platform Huobi hit a record trading volume of over 770000 BTC. Plus, other Bitcoin exchanges demonstrated a soaring number of users as well. The expanded trading, especially in China, appeared when the Chinese government was cutting interest rates. Still, the most discussed cryptocurrency seems to become even more important for China. Gold prices are increasing as well as another alternative currency’s, which is much easier to transfer by the way.
Bitcoin touched exactly $300 at 14:36 UTC on Bitstamp. However, this milestone has been short-lived, lasting less than two minutes.
So, it appears that the value of bitcoin may keep increasing. However, since this summer, when the digital currency surged on Grexit, BTC has decreased. But in case a few hundred million Chinese think that it’s high time to invest in Chinese deposits in bitcoin (whose total market cap was about $3 billion), the bitcoin bubble may happen again.
CNN Money report reads that the fate of the Chinese economy will depend upon the reaction of the people to the Chinese Communist Party Meeting that is scheduled to be held on the 26th of this month to present and discuss a 5 year plan for the economy. China is being the biggest driving force behind the strong bitcoin price and will continue to be as long the investment spree among the Chinese continues, states News BTC.
So far, with China cutting interest rates, the European Stock Market is becoming strong. It may have a small impact on the bitcoin price trend as well.
According to Bitcoinist, Barry Silbert, the Digital Currency Group (DCG) founder, is optimistic about the price, as not long ago he told a group of investors in Palo Alto, California that “the price will be higher.” Plus, he believes the virtual money will continue to emerge as a solid store of value.
In addition to that, some users feel that there may be some liquidation when the U.S. government sells the last of the seized Silk Road coins. It’s necessary to mention that the federal auction will take place on November 5th, when 21 separate contained units of 2,000 bitcoins will be sold to the highest bidders. The fact that over 44 thousand new coins are going to be put into the public market may also affect the value of BTC.