The Reasons Behind Bitcoin’s Continued Rise

A couple of weeks ago, I made the point that a common sense reading of the chart for Bitcoin against the U.S. Dollar (BTC/USD) pointed to a controlled, sustainable bull run. That bullish look has been given a boost since then, as the currency pair has pushed up to revisit the highs from the end of last year at around $465, a break of which would make the psychologically important $500 level the next target. Even more significant than the technical confirmation of the upward trend, however, is that the most recent jump in Bitcoin’s price has been driven by real, fundamental progress.

Two factors seem to have contributed to the bullish tone of BTC/USD trading over the last week or so, and both point to the long term viability of Bitcoin as an actual currency rather than as a trading instrument. Neither was news as such, as in both cases rumors had indicated the event was likely, but confirmation of the two positive stories justified and intensified the long term bullish outlook for Bitcoin

Firstly, we learned this week that exchange company Bitstamp had been granted a license in Luxembourg to operate as a payment institution. That may not appear

Read more ... source: TheBitcoinNews