Bitcoin Passes The $700 Mark And Shocks The Community

By Daniel Zo Bitcoin, Volatility, China, EU, BTCC

Surprising news from the realm of Bitcoin, as the world-loved digital currency has just managed to reach its highest level in more than two years.

If you’re not yet aware, the cryptocurrency has managed to break the $700 barrier, and is valued at $709 at the time of writing. This is bitcoin’s highest value since February 2014, thus showcasing its true potential as more and more people decide to switch to it. In fact, during the last month alone, the value of bitcoin has increased by over 51%.

Bitcoin price goes up

At this moment in time, economic analysts have pointed out that the rise in price may be due to a rule recently written in bitcoin’s code, meant to tighten its supply, thus making it a safe-haven in a world where economic collapse can happen at any given time. The halving that will occur this summer definitely is responsible for a large percentage of the value increase, but there may be other reasons as well.

Recent reports indicate that this may have something to do with people from China and the European Union who are trying to get their funds into other assets as bitcoin, while also bouncing around large profits. Those who currently hold large amounts of bitcoin are advised to not sell yet, as the price will likely increase even more, considering the fact that the last couple of months have represented a period of stability and popularity rise for the digital currency.

In a recent interview, Bobby Lee, the CEO of BTCC stated that: "We are seeing very high trading volumes (…) The block halving will dramatically decrease the bitcoin being added as we approach 75 percent of all bitcoin issued. People understand that in this world of ever expanding assets and printing of money, we have something that's fixed and limited in issuance. It gives a decent alternative for people who want to hold assets that can have sustained purchasing power."

While bitcoin has been volatile in the past, it’s worth pointing out that its highest value was of $1,216, back in 2013. Since then, it has been in a constant value decline until the last months, when a new period, of slow, but steady growth has commenced.

The price increase has managed to push Bitcoin’s market capitalization to more than $10 billion for the first time ever, while also encouraging it to increase from $7 billion to this number in just two weeks, thus once again proving its true potential, but also volatility.

Based on everything that has been outlined so far, what do you personally think about Bitcoin’s value increase? Let us know your thoughts in the comment section below.