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What Is Driving Bitcoin Price

Bitcoin Price Gear Towards $19,000, Surges By $1,000 In A Single Day

Bitcoin Price Gear Towards $19,000, Surges By $1,000 In A Single Day

Bitcoin Price Gear Towards $19,000, Surges by $1,000 in a Single Day The bitcoin price has increased by more than $1,000 over the past 24 hours and is en route to surpassing the $19,000 mark. Bitcoin Second Most Popular Keyword on Google in 2017 Google, the worlds most widely utilized search engine, has revealed that bitcoin has been the second most popular keyword on its platform throughout 2017. As the demand for bitcoin from both casual investors and retail traders increased over the past 12 months, the popularity of bitcoin on search engines and social media platforms surged proportionally. While the recent surge in the price of bitcoin can be attributed to a variety of factors, the two driving factors of the rise in bitcoin price have likely been the global finance markets anticipation of CMEs scheduled listing of bitcoin futures on December 18 and the strong performance of alternative cryptocurrencies within the past week. Given that strong rallies of cryptocurrencies almost always follow with bear cycles, traders are likely expecting the price of other cryptocurrencies in the market such as Ethereum, Bitcoin Cash, Ripple, and Litecoin to decline in the short-term, considering their recent meteoric rise in values. As Litecoin creator Charlie Lee explained, Every crypto bull run Ive seen has been followed by a bear cycle. The market needs time to consolidate. Thats just my experience from 7 years of watching this space. How low and how long it will be is TBD. People need to be aware of this possibility and invest responsibly. The Chicago Board Options Exchange (CBOE), the global finance industrys largest options exchange market, has had a successful debut with its listing of bitcoin futures on December 14. As such, the global finance market is highly anticipating Continue reading >>

Bitcoin: What's Driving The Frenzy?

Bitcoin: What's Driving The Frenzy?

by Daniel Shane @CNNMoneyInvest December 8, 2017: 6:23 AM ET 2017 has become the year bitcoin went big. It started the year worth less than $1,000 but has soared above $17,000 . Back in 2011, it was worth less than a dollar. It is being bought and sold by investors in a frenzy, driving the price higher and higher. Some leading economists and financiers are calling bitcoin a bubble and a fraud, but industry insiders say they think it's only going to get bigger as it gains more widespread acceptance. So how does the virtual digital currency work -- and what's behind its spectacular rise? Related: Bitcoin pops above $17,000 for the first time Bitcoin ( XBT ) was created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto. Many of its backers saw it as a simple global payment system for anyone to use rather than a financial asset for investors to trade. Unlike the U.S. dollar or Japanese yen, digital currencies such as bitcoin aren't issued by central banks like the Federal Reserve. Instead, they are "mined" by computers using complex algorithms. Related: Bitcoin bubble brewing or is it still a bargain? Payments in bitcoin can be made without traditional middlemen such as banks and without the need to give your name. That made bitcoin popular with criminals and others who wanted to move money anonymously. It's also been adopted by businesses around the world as a way to pay for everyday things like groceries, train tickets and haircuts. Exchanges, or marketplaces, allow people to buy or sell bitcoins using different currencies. People can send bitcoins to each other using mobile apps or their computers. It's similar to sending cash digitally, and a fee is charged for every transaction. Bitcoins are stored in a "digital wallet" a kind of virtual bank account t Continue reading >>

Wall Street Driving Bitcoin Price 6k Surge, Says Bloomberg

Wall Street Driving Bitcoin Price 6k Surge, Says Bloomberg

Wall Street Driving Bitcoin Price 6k Surge, Says Bloomberg Wall Street is the major force driving this months Bitcoin price surge towards $6000, says Bloomberg. Wall Street is driving Bitcoins price rise this month according to Bloomberg, even as Goldman Sachs still picks gold over crypto. In comments on Bloomberg TV , the publications analyst Edward Robinson said bank clients are knocking on the door after seeing charts showing Bitcoins 2017 growth. He commented: I think Wall Street may actually be responsible for driving the price, because its with every announcement that Wall Street is thinking of embracing Bitcoin as a new asset class that we start to see this surge. The debate over Bitcoins attractiveness versus precious metals meanwhile is becoming a preoccupation for major investment bank Goldman Sachs. After its CEO suggested an open-minded approach to crypto earlier this month, analysts at the giant nonetheless said traditional assets were still important despite their lack of yield. They are neither an accident or a historic relic, Jeffrey Currie and Michael Hinds added. Other theories explaining Bitcoins rapid appreciation towards $6,000 in October are more reactionary. The upcoming two hard forks of the network, Bitcoin Gold and SegWit2x , are expected to produce significant price volatility in a similar manner to Julys Bitcoin Cash. Nonetheless, analysts from within the cryptocurrency space have remained broadly bullish as Chinas impact waned, predicting a solid $6,000 price tag by the end of the year and significantly more in the later short-term. Continue reading >>

Bitcoin's Price Keeps Breaking Records. Here's What's Driving Its Growth.

Bitcoin's Price Keeps Breaking Records. Here's What's Driving Its Growth.

Bitcoin's price keeps breaking records. Here's what's driving its growth. Bitcoin reached a record high on Tuesday, climbing above $2,900 for the first time. Thats more than double the price at the beginning of May, and an incredible 500-fold increase over the past five years. For Americans, the soaring value might seem like a puzzle, since it doesnt seem like the payment network is any closer to mainstream acceptance here. But experts tell me that the currencys recent growth is driven by soaring demand in Asia. Bitcoins value has more than doubled since the beginning of May. Based on the data we've collected, we think speculation in the primary driver, said Garrick Hileman, a Bitcoin expert at the Cambridge Center for Alternative Finance, in an interview in late May. Hileman says that surveys show most users buying and selling bitcoin for speculative purposes rather than to buy things or send cash to other people. The big question, of course, is why the market suddenly got so optimistic about Bitcoins future. One factor is the Japanese government formally recognized the cryptocurrency in April, giving it greater legitimacy in Asias richest major economy. Theres been steady growth of international money-transfer services that use Bitcoin to move cash from one country to another. Bitcoin has also been in the news recently because the authors of ransomware often demand Bitcoin payments from victims. Thats not great for the cryptocurrencys image, but it might nevertheless be driving demand upward. If history is any guide, the latest surge in Bitcoins price is likely to end in tears for many of the people who are frantically buying up the virtual currency. There have been three previous times when Bitcoins value soared like this once in 2011 and another in 2013. Each boom Continue reading >>

Bitcoin: Four Reasons Driving The Cryptocurrency's Price Jumps And Bumps

Bitcoin: Four Reasons Driving The Cryptocurrency's Price Jumps And Bumps

Bitcoin: Four reasons driving the cryptocurrency's price jumps and bumps Opinion The Conversation By Alicia (Lucy) Cameron and Kelly Trinh, CSIRO There are a number of factors driving Bitcoin's extreme volatility. The price of Bitcoin has dropped to around $8,000 in the past few days, after almost hitting $10,000 in the past month, and rising more than 1,850 per cent since 2015 . All of this shows how volatile the currency is, prompting the question, what leads to such huge movements? Our ongoing research reveals four factors that affect the price of Bitcoin. These include media hype and uptake by peers, political uncertainty and risk (such as the election of Donald Trump or the vote for Brexit), moves by governments and regulators, and the governance of Bitcoin itself. It is likely the last factor that has driven the latest drop in the price, as a proposed Bitcoin split (or "fork") failed to gain support from developers towards the end of last week. The split would have doubled the number of coins in circulation (as previous splits have) and increased transaction speed. Economists have long had a notion that psychological factors affect investor decisions. This is called " animal spirits " and refers to investors making decisions based on the behaviour of other market participants and their own intuitions, rather than hard analysis. Analysis of the price of Bitcoin shows that positive media coverage is one of the main factors driving the price. Can't tell a bitcoin from a blockchain? Read our explainer to see how the cryptocurrency works. Positive media coverage of new technologies causes a well-known hype-cycle a peak of hype is followed by a "trough of disillusionment". This was most apparent in the early days of Bitcoin, when mainstream press started to report on t Continue reading >>

Bitcoin Price Growth Reportedly Driven By Individual Investors In South Korea, Japan

Bitcoin Price Growth Reportedly Driven By Individual Investors In South Korea, Japan

Bitcoin is a hit among retail investors in Asia. A piece from the Wall Street Journal on Tuesday posited that, based on trading volumes, millions of investors in Asia are the impetus for Bitcoins startling rise this year. Japan, South Korea, and Vietnam were responsible for almost 80% of the trading activity worldwide by the end of November, according a research firm called CryptoCompare that was cited by the Journal. South Korea in particular is seeing flare ups of activity, surpassing the U.S. at one point last week in exchange activity. With a population of only 51 million, the countrys bitcoin investors had accounted for a quarter of the worlds trading. There are now storefronts and customer service bays to facilitate trading for everyday investors. The demand among citizens has brought the values of the currency to peaks higher than those in the U.S.the largest cryptocurrency exchange at one point quoted the price at almost $25,000. Bitcoin prices have yet to break $20,000 in most U.S. exchanges. Whats particularly surprising is that its apparently individual retail investors in Asia that are responsible for this bitcoin upswing, rather than big investment firms and established Wall Street types that played a big role in past frenzies like the dot-com bubble. Its one of the few times in history that amateur investors have played such a role, according to Chris Weston, chief market strategist at IG Group, who told the Journal , It feels like this whole thing is being driven by the average Joe who isnt nearly as financially literate as a professional fund manager. The Asian swell reportedly began in China, which was once responsible for a large portion of the worlds trading volume. In its cryptocurrency heyday, the country was responsible for two-thirds of all the B Continue reading >>

Bitcoins Price Spike Is Driving An Extraordinary Surge In Energy Use

Bitcoins Price Spike Is Driving An Extraordinary Surge In Energy Use

Bitcoins price spike is driving an extraordinary surge in energy use Mining Bitcoins uses more electricity than entire countries. The price of a Bitcoin reached a record high of $16,601.77 Thursday morning before falling to $15,500, in what has been a weeklong tear in a price that was $10,000 a month ago and just $1,000 in January. As the value of the digital currency has climbed, so has the amount of energy needed to keep this online economy running, which now exceeds the energy use of 159 individual countries , according to one controversial estimate. Over at Digiconomist , a Bitcoin blog and analysis site, owner Alex de Vries reported that the Bitcoin Energy Consumption Index, an measure of the energy used to mine the digital currency every year, was up to 32.36 terawatt-hours on December 6. Thats on par with the energy use of the entire country of Serbia, more than 19 European countries , and roughly 0.8 percent of total energy demand in the United States, equal to 2.9 million US households. And it still leaves out electricity used by other parts of the Bitcoin pipeline, like ATMs, de Vries told me in an email. A map of countries that use less electricity than Bitcoin mining Thats because producing the online currency requires intense computational processing power, which in turn demands a huge amount of electricity. Mining Bitcoins is like finding solutions to complicated math problems that become progressively more difficult. Coins are awarded to computers that verify transactions with an algorithm that gets more complex over time. In the early days of the currency in 2009 with few computers, few transactions, and a price of $2 per coin this was something you could do on your home computer. Now with a global market cap of more than $167 billion , it requires spec Continue reading >>

New Fed Appointee May Be Driving Bitcoin To All-time Highs

New Fed Appointee May Be Driving Bitcoin To All-time Highs

New Fed Appointee May Be Driving Bitcoin To All-Time Highs Fed appointee wants to ban cash - Bitcoin soaring makes sense. As Bitcoin destroyed the $12,000 level earlier today, many pundits and analysts looked for answers for why. The solution may not be in anything about the cryptocurrency , but more about the newest nominee to the Federal Reserve (Fed), Marvin Goodfriend. Goodfriend has been hailed both as a visionary and as the worst Fed nominee of all time, depending on which news source is reporting . However, the newest potential Fed member may be having a positive impact on the Bitcoin market. His anti-cash views have been criticized as a form of monetary strangulation and government control into personal finance like nothing the US has seen to date. The appointee has previously voiced his opinion that paper money keeps financial freedom in the hands of the individual - a scenario he does not like should a crisis occur. During a crisis, the Fed generally lowers the interest rates to increase borrowing power for consumers and businesses alike. The problem is that should the Fed desire to lower interest rates to something under zero on savings or checking accounts individuals could simply withdraw paper money from their accounts to keep from losing money. This freedom to protect the value of money does not sit well with Goodfriend, who posits that cash thereby limits the power of the Fed to control the economy. This sort of stringent monetary policy may well be the cause of the recent spike in Bitcoin. Should such strong-handed government policies come to fruition, a digital, decentralized currency presents a method for trading and interaction that is outside of Federal Reserve control. Certainly other factors have contributed to the price bump, but Goodfriend may Continue reading >>

Bitcoins Price Has Soared. What Comes Next?

Bitcoins Price Has Soared. What Comes Next?

Technology |Bitcoins Price Has Soared. What Comes Next? The average cost of a Bitcoin crossed $17,000 on Thursday, though on some individual exchanges where it is traded, the value was even greater. The average cost of a Bitcoin crossed $17,000 on Thursday, though on some individual exchanges where it is traded, the value was even greater. Note: Value as of 8:45 p.m. Eastern time on Dec. 7. | Source: Coindesk | By The New York Times SAN FRANCISCO Bitcoin has been in a bull market like few the world has ever seen. At the beginning of the year, the price of a Bitcoin was below $1,000. It hit $5,000 in October, then doubled by late November. And on Thursday, less than two weeks later, the price of a single Bitcoin rose above $20,000 on some exchanges, according to Coinmarketcap . The latest price spike has been credited to signs that Wall Street companies plan on bringing their financial heft into the market. At the current cost, the value of all Bitcoin in circulation is about $300 billion. To get a sense of how big that is, all the shares of Goldman Sachs are worth about $90 billion. The gains have been driven by several other factors perhaps the most important being the irrational mentality that can take over in speculative bubbles. But most people buying Bitcoin are doing so in the belief that others will want it even more in the future. The gains, though, have many people, even Bitcoin believers, anticipating a big crash. Currently, the average price of one Bitcoin is about $, according to Blockchain.info, a news and data site. Bitcoin used to be all about libertarians and black-market trade. Are those still driving the price? The fringe communities that drove Bitcoin in its early years are playing a much less important role in the current rally. Many investors have Continue reading >>

Bitcoin Price Drivers: What Moves The Long-term Price Of Bitcoin?

Bitcoin Price Drivers: What Moves The Long-term Price Of Bitcoin?

Bitcoin price drivers: what moves the long-term price of bitcoin? *Such is the nature of cryptocurrency investment. When I began to write this post bitcoin was trading at $900. Its now past $1100 and may well break its ath soon. If youre deciding whether to invest now, Id say go for it but only in small amounts, and only with a weekly or monthly schedule of dollar-cost averaging. The bitcoin price goes through boom and bust cycles, tied as it is to human psychology and irrationality, but Im more of a believer than ever. Imho, anything above $2K is a bubble which will inevitably burst, as it has many times through its entertaining and volatile history. Buyer beware! Bought my first bitcoin in 2013. Down the rabbit hole I went: obsessively checking the price tens or hundreds of times a day, scanning every new item posted to the crypto subreddits, reading more whitepapers than I ever had in school, devouring every analysis and essay I could google. And like every investor who has put far too much of their net worth into cryptocurrency, Ive developed some strong and always changing views on what moves the long-term price. Its impossible to consistently and accurately forecast short term price fluctuations, subject as they are to peoples whims, but I have a strong conviction that cryptocurrency will be one of the greatest wealth creation opportunities that weve witnessed in the Internet age. Software is eating the world, and it is finally eating money. So the below explanations arent factors that move the price every day. The daily price is more influenced by factors like technical analysis and slippage and popular press. Rather, the below arguments are the fundamentals, the pillars, that drove bitcoin from a fledgling technology to a $15B market cap today, and will still b Continue reading >>

What's Driving Bitcoin Price Today? Is Bitcoin Mining Illegal?

What's Driving Bitcoin Price Today? Is Bitcoin Mining Illegal?

Just two years ago, a single bitcoin was worth around $5 but today that single bitcoin is worth $365+. So whats driving bitcoin Price today? One single factor is Bitcoin mining . Bitcoins are created as a reward for the computationally intensive work of verifying and recording payments in a public ledger. That work is called mining and the more computing power that is put in, the more bitcoins that are created in return. That creates another question that is related to this article that needs to be discussed. Is bitcoin mining illegal? Bitcoins price today is on the rise and bitcoin mining is closely related this rise. MUST READ: States Where Bitcoin is Legal! California is Set to Legalise bitcoin Unlike U.S. currency, one of the big advantages of Bitcoin is that transactions are entirely transparent. The Bitcoin markets publish on a daily basis data such as the total number of bitcoins in circulation. Also, the number of transactions (other than exchange transactions) and the estimated number of new bitcoins mined during that day are monitored. Some study was done by Ladislav Kristoufek at the Charles University in Prague, Czech Republic and he details factors that directly affect the Bitcoin Price Today. Using the information stated above and his studies, the supply and demand for bitcoins can be determined. This has persuaded people to invest their own computing power into bitcoin mining. That too has had an effect on the price. This effect has become less prominent more recently because of the specialized and expensive computing hardware that has become necessary to compete in the mining market. A single bitcoin price today is very elastic and it seems the effect of bitcoin mining directly affecting that said price has created questions of illegality. SEE ALSO: Rog Continue reading >>

Heres Whats Driving Bitcoin Buyers Rush To Millennial Gold - Marketwatch

Heres Whats Driving Bitcoin Buyers Rush To Millennial Gold - Marketwatch

A client jokingly told me that his biggest gripe with me in 2016 and 2017 was that I didnt buy him any bitcoin. I told him not so jokingly that if I bought him bitcoin, hed be right to fire me. Maybe Im a dinosaur; but, like gold, bitcoin BTCUSD, +0.05% is impossible to value. What is it worth? It has no cash flows. Is bitcoin worth $2, $200, or $20,000? But Wall Street strategists have already figured out how to model and value this creature. Their models sound like this: If only X percent of the global population buys Y amount of bitcoin, then due to its scarcity it will be worth Z. On the surface, these types of models bring apparent rationality and an almost businesslike valuation to an asset that has no inherent value. You can let your imagination run wild with Xs and Ys, but the simple truth is this: bitcoin is un-valuable. Moreover, in my view, bitcoin is in a bubble. In 1997, when Coca-Colas KO, +0.09% stock valuation started to rival some dot-coms, bulls used this math: The average consumer of Coke in developed markets drinks 296 ounces of Coke a year. These markets represent only 20% of the global population. And then the punchline: Can you imagine what Cokes sales would be if only X% of the rest of the world consumed 296 ounces of Coke a year? Somehow, the rest of the world still doesnt consume 296 ounce of Coke. Twenty years later, Cokes stock price is not far from where it was then but on the way it declined 60% and stayed there for a decade. Coke, however, was a real company with a product, sales, a real brand, and tangible, dividend-producing cash flows. If you cannot value an asset you cannot be rational. With bitcoin above $11,000, it is crystal clear to me, with the benefit of hindsight, that I should have bought bitcoin at 28 cents. But you only get Continue reading >>

Mrs. Watanabe Driving Bitcoin Price Higher: Deutsche Bank

Mrs. Watanabe Driving Bitcoin Price Higher: Deutsche Bank

Mrs. Watanabe Driving Bitcoin Price Higher: Deutsche Bank Join our community of 10 000 traders on Hacked.com for just $39 per month. Mainstream financiers like BlackRock CEO Larry Fink may claim that bitcoin is an index of money laundering, but a new report from Deutsche Bank AG says that this years bitcoin price surge is not the product of criminal activity, its Mrs. Watanabe. As reported by Bloomberg , the Japanese branch of the German banking giant issued a note to clients attributing the bitcoin prices dramatic fourth-quarter rally to Mrs. Watanabe, a term colloquially used to refer the archetypical Japanese retail investor: a housewife who manages her familys finances with a shrewd eye. That Mrs. Watanabe would embrace bitcoin so willingly may seem surprising given her cautious reputation, but that stereotype has not been true for some time now. Facing low domestic interest rates, many retail investors in Japan had become active forex traders over the past several decades accounting for approximately 50 percent of all forex margin trading. These investors see cryptocurrency trading as a natural corollary to forex trading, albeit with the opportunity to reap much larger returns. For instance, on bitFlyer the highest-volume Japanese bitcoin exchange traders can exercise up to 15 times leverage. We think that retail investors are shifting from leveraged foreign-exchange trading to leveraged cryptocurrency trading, analysts led by Masao Muraki wrote. Indeed, Japan has emerged as a major economic center for the cryptocurrency industry since the country passed bitcoin-friendly regulations earlier this year. According to some estimates, as much as 40 percent of all cryptocurrency trading is now denominated in yen a phenomenon that was spurred by Chinas crackdown on mainl Continue reading >>

Why Is Bitcoins Price So High?

Why Is Bitcoins Price So High?

Zelda expansion, Death Stranding and other titles hyped at The GameAwards Bitcoins price has risen stratospherically, a fact that leaves many minor players in the market with massive gains and many bigger players millionaires. But is this a bubble? Are the gains real? And are the bitcoin whales in for a sad Christmas? First we must understand what drives bitcoin price and, in particular, this boom. The common understanding for current growth leads us back to institutional investors preparing for the forthcoming BTC futures exchanges. The primary theory about the astonishing rally being put forward by investors on social media is that bitcoin will soon benefit from big institutional money injections via the introduction of the first BTC futures products. CBOE Global Markets and CME Group are launching new futures contracts on December 10 and December 17, allowing investors to go long or short on bitcoin. This ability makes bitcoin far more palatable to big investors who are currently flooding the market to make profits if and when the bitcoin price falls. This move also legitimizes bitcoin in Wall Streets eyes, an important point considering cryptocurrencies are still suspect. Further growth comes from the bitcoin as a store of value crowd. This group of enthusiasts bought and held bitcoin and will not sell it at any current price. More and more bitcoin fans are entering into this group and they are driving up demand increases. In a world where people expect bitcoin to be worth $1 million soon this sort of activity whether rational or irrational is quite popular. We see a common thread between these points: hype and news. All cryptocurrency movements are based on domain specific media and conversations between traders. Bitcoin traders, it can be said, are now akin to th Continue reading >>

Bitcoin Price Factor Could Be Social Status - Business Insider

Bitcoin Price Factor Could Be Social Status - Business Insider

A vertical stack of three evenly spaced horizontal lines. * Copyright 2018 Business Insider Inc. All rights reserved. Registration on or use of this site constitutes acceptance of our facebook linkedin twitter email copy link Analysts from Bernstein Research compared the recent demand for bitcoin to markets in China's anti-ageing medicine and high-end liquor. Their research considered the characteristics of a Veblen good a product which gains its appeal from the social status attained by owning it. The analysts also said bitcoin's value is driven partly by limited supply, but uncertainty around underlying demand leaves the market open to manipulation. The price action of a social status-boosting alcoholic drink popular in China may shed light on the economics of bitcoin, according to Bernstein Research. To try and add some context to bitcoin's meteoric rise, the analysts compared the key drivers of demand to that of well-known Chinese products in two distinct fields: Medicine and alcoholic beverages. "Bitcoins do not provide investors with cash-flows or other benefits, but the maximum supply of bitcoins is fixed and so the price is driven by speculation on the potential demand for bitcoin," the analysts said. The market for cryptocurrencies also has a significant degree of uncertainty about what underlying demand actually is. How many people really want cryptocurrencies? Why do they want them? How many will want them in future? Will they want them on an ongoing basis over a long period of time? This uncertainty about demand contributes to the price volatility. There are numerous unregulated exchanges around the world, among which the price of bitcoin can vary significantly. And prices for bitcoin fell overnight, simply because the website coinmarketcap.com removed pric Continue reading >>

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