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Bitcoin Breaks $7000

A Few Theories as to Why

2019-05-12 07:51:21 | Jonathan Ganor

Bitcoin has been having quite a bull run recently. The notorious cryptocurrency managed to nearly double its value in the past 3 months. During February 2019, Bitcoins price hovered around $3600 and now its price is over $7200 at the time of writing this article. The price of Bitcoin has jumped in a very significant and very quick manner without much explanation. This is why we have decided to look into a few theories explaining Bitcoin's rapid growth.

Institutional Adoption

The New York Department of Financial Services (NYDFS) has been issuing bitlicences since 2016, but recently approved quite a few applicants. One of these bitlicences was awarded to Tagomi, a prime broker. Tagomi serves as a middle man of sorts for hedge funds and financial institutions to buy several different cryptocurrencies. In general, the NYDFS awarded over 18 bitlicences allowing many businesses to be involved in the world of cryptocurrencies.

NYC Blockchain Week

While this might just be a bit of a speculation, but Bitcoin's surge coincides with the biggest crypto-conference, Consensys. There are many different conferences going on this week in New York that focus on blockchain & Bitcoin. All the biggest names in the world of cryptocurrencies meet up in to discuss the evolution of blockchain & Bitcoin's future. Seeing that Bitcoin & most alts are climbing, it will undoubtedly be busier than 2018's conference.

Binance

While the recent Binance hack was a costly one, causing $40 M in damages, it might have caused Bitcoin's price to rise. As a result of this hack, all deposits and withdrawals are still currently suspended. Seeing that Binance was one of the world's largest exchanges, this could have increased the scarcity of Bitcoin. The scarcity might have leaded to higher prices which we are seeing currently.

The Future

Seeing Bitcoin's rapid spike in price, some have speculated that it will once again reach its all-time-high of $20,000 soon.  This theory seems not too far-fetched considering Bitcoin's dramatic peaks and bottoms. While crypto winter seems over, only time can tell what is in Bitcoin's future.


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