Bitcoin had been steadily climbing in price for past several years, today marks a record day in the valuation of bitcoin. It is currently being traded at $5,100 that is an all-time high valuation for any digital currency. The recent valuation broke the previous record of $5,000.
It is difficult to clearly pinpoint the exact cause of the rise. The Chinese ban on bitcoin exchanges only managed to cause a temporary dip in its valuation in September. The recent digital market stats reveal that trading volumes for bitcoin in China have fallen to 1.6% that is extremely low compared to the global stats.
While bitcoin exchange has been falling in China it has surged in other Asian markets including Japan. Recently Japan has awarded over 11 licenses to different bitcoin exchanges across the country. The Japanese trading now represents 58% of the market share in pair trading for bitcoin and Yen. The BitFlyer exchange in Japan is now dealing with ¾ additional volume compared to the past trends. The Japanese government has welcomed the bitcoin trading with open arms, which has caused Japan to be the biggest trader of bitcoin in terms of volume.
The BitCoin investors have made a decisive shift from China to other lucrative markets like Japan, Korea, and U.S.A. The dollar now represents 27% of the bitcoin share globally while Korean markets are also surging at 7%.
The experts in the BitCoin industry have speculated that these prices might surge even further and can reach up to $7,500 by the end of 2017. BitCoin price surges have been highly unpredictable but have managed to climb consistently despite strict regulations across the globe.
The market trends all remain positive despite the SegWit2x fork. If the investors overlook the growing concerns pertaining to the SegWit2x the rapid surge in bitcoins value might accelerate even further. The BitCoin value is dependent upon the free market and the growing interest in Japan, Korea, and U.S.A are considered to be the biggest contributors in the recent price surges.
The Price of Any commodity is based upon the confidence that the investors attach to it. BitCoin is quickly becoming a currency of choice for small investors across the globe. This added interest may even force larger investors to accept the bitcoin trade. The SegWit2X fork would increase the quantity of the bitcoin but it can cause a slight dip in its valuation. Another increase in the Bitcoin valuation can be credited to the Fork which has forced the buyers to invest more in BitCoin to benefit from the increase in value and quantity of the bitcoins.
All things considered, the bitcoin and cryptocurrency at large continues to grow as more and more investors flock to it. There have been some positive signals from Chinese market as well despite the recent bitcoin exchange closures that could increase the valuation even further. The bitcoin provides a convenience alternative to the hassles of the current banking model that in itself is the biggest cause of success for bitcoin.