The prices of Bitcoin have been down since last year November, but they have suddenly increased by 15% on Tuesday. What may have caused the sudden increase in Bitcoin? According to Nigel Green, the sudden rise in bitcoin may entice stockholders who have been waiting for the rates to increase.
You, however, should not be surprised by the swings of bitcoin since it has become normal nowadays. Aslam who is a chief market analyst in the United Kingdom maintained that Bitcoin is a great currency with the possibility of scoring above 20% increase per day. This can be evident from the close of 2017 before the rate went down.
The secret in bitcoin rate gush is still unknown
The volatile and abrupt swings are not new in the crypto world, but the aggressive surge in Bitcoin has remained mysterious. The price of bitcoin could have gone higher because people are back to buying the currency according to Lukman Otunga an FXTM research analyst. This could just be due to an increase in steroid investments, and there may not be a specific justification for the price escalation.
Most business people who want more liquid cash prefer to deal with Bitcoin. The sudden use of the currency by traders may result in the rally. According to the head of GuideStone Capital Management, the sudden surge is just like any other case of “a rebound in risk”
Towards the end of last year, the price of Bitcoin was around $3,100 and it has now increased by 25%. On Wednesday, the rate has become more stable just below $5,000. Representatives from the company assured that more people will continue using bitcoin and other types of digital cash in the procurement processes.
Most vendors on the online platform have accepted digital currencies like bitcoin, ethereum, and litecoin among others as a mode of payment. Other businesses which had not recognized bitcoin are starting to use it due to its convenience and liquidity. Bitcoin is however not near to get to its highest price which was $20,000 in the year 2017.