Bitcoin prices up 20%+ over past month following rising commodity prices
Bitcoin back above $270 for first time since early August – but this time might be different.
For those in the trading world trying to figure out Bitcoin and where Bitcoin prices may be going, it appears that an answer might finally be at hand.
Very quietly for a change, Bitcoin prices have been climbing steadily since mid September when they bottomed out at around $200. As of the time of writing Bitcoin was changing online hands at about $272 – more than 35% above those August lows and 20% above mid-September prices.
Not much new Bitcoin news has been out there driving the change.
However good ol’ commodity prices have had a very good start to Q4 trading, with WTI Crude at $47-48 after falling to the high $30’s in late August, and recent punching bag Gold creeping closer to $1,200 an ounce after falling below $1,100 in August.
And Bitcoin prices seem to be following right along.
Bitcoin prices past three months. Source: Bitstamp.
So the secret seems to be out – Bitcoin prices have normalized. Bitcoin is certainly NOT a commodity – you can’t hold it or turn it into a ring or have it fuel your car. But it does appear as though Bitcoin prices have begun to follow the risk-on risk-off pattern driving the market in general.
And that is a good thing for Bitcoin brokers, Bitcoin traders, and those looking to bring Bitcoin into the mainstream payments chain. The more Bitcoin follows ‘the crowd’, at least in general, the easier it is for brokers to hedge Bitcoin exposure and for traders to have reasonable views on the cryptocurrency. And, for vendors to feel comfortable in accepting Bitcoin as payment for goods and services.
Will this pattern continue to hold? Time will tell.
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