What Are The Two Factors That Are Influencing The Price Of Bitcoin?
2017 was the year of high both for bitcoin and other Cryptocurrencies. It has surpassed the $5000 mark and is now poised to surpass $6000 mark. At the beginning of the year, it was up by 546% and is now trading at $5,592.56.
The group of other Cryptocurrencies like Ethereum and Litecoin has followed the Ethereum trajectory and has made huge profit ranging from 4,000% to 1,325% respectively. The factors that are working behind these raising prices are other than the inherent dynamics of Cryptocurrencies.
The two factors that are influencing the price of bitcoin at the moment are:
- The constitutional investors are showing interest
A report by the one of the biggest Bank from America says that there has been a growth in the number of institutional investors in cryptocurrency. Many of the companies from the financial service sectors have begun providing cryptocurrency as one of their custom product this will affect the liquidity and market capitalization value of those currencies, says the report.
Financial institutions from have gone a step ahead and have started designing their new products using Cryptocurrencies. As for example, the price of Ethereum can be tracked using exchange-traded notes from the NASDAQ exchange of Sweden. The financial regulatory board of Switzerland has approved the product one of the biggest banks in the country that enables its client to trade in Bitcoin. Banks from the US are also following the same suit.
All these moves can lead to another price rise for Bitcoin.
- Asia is showing interest
Some of the major countries in Asia have prevented the use of Bitcoin in their countries, but there has not affected the investor’s interest in these currencies. According to a report the investors from these countries are paying a premium to trade Bitcoin and other Cryptocurrencies. In fact, if reports are to be believed in one of the exchanges of these countries the value of bitcoin has surpassed $6000.
Japan has already recognized Bitcoin as a legal tender in the country could also lead to the increase in the price of Bitcoin. Meanwhile first global crypto fintech company from Japan has said they will do their level best for the healthy development of cryptocurrency in Japan and on a global scale.
Asian countries are also becoming the growing market of bitcoin in spite of having some regulatory issues. continue reading to know more.