The price of bitcoin has almost doubled since last month. Why?
The bitcoin market is reaching a tipping point. More investments and more use cases for bitcoin means that the real mainstream bitcoin demand is starting to take off. After trading around $250 for much of the year, the digital currency eclipsed $400 this week.
While bitcoin has changed regulatory status in Europe and Chinese investors are increasing their market share, no decisive factor has been identified.
We at XBT Provider, my company that launched the world’s first bitcoin-asset on a regulated exchange, have seen increase in the demand for our regulated bitcoin products. From our perspective, here are what we believe to be a few key factors driving the current price movements of bitcoin.
Must Read: ‘Bitcoin Is Where the Internet Was in 1995’
1. Favorable regulation
Europe’s top court recently concluded that bitcoin must be treated as a currency. The implications are substantial for tax purposes and a clear view from regulators on how to handle bitcoin gives more clarity for investors on how to treat the new currency. Additionally, there are signs of an improved regulatory environment for bitcoin in China.