Bitcoin defies the doubters and climbs to $1,186, marking a new price record.
Bitcoin has reached a new record high price of $1,186, surpassing the previous all-time high reached during the Bitcoin-mania of 2013.
After Bitcoin reached the previous record high price of $1,165, the price plummeted to half the figure when Mt. Gox, one of the most substantial Bitcoin exchanges shutdown.
The closure of the exchange came about following the loss of hundreds of thousands of Bitcoin at the expense of its users. After this point the price of the digital currency has been continuously unstable.
Bitcoin was stabilised at $250 in 2015, and has increased at a consistent, steady rate since this point. One month ago Bitcoin was trading at $885, and at $736 the month prior.
The price began to pick up more rapidly following the devaluation of the Yuan due to India and China’s removal of high valuation bank notes.
One of the most influential factors behind the growing price of Bitcoin has been the election of President Donald Trump.
Comparable to Brexit, the election of Trump brought uncertainty to the market and led to the reaction of moving money into Bitcoins. The reason that this action was taken is because Bitcoin is uncorrelated from other capital market assets
The awareness of digital currencies has also grown in recent times, with financial services pursuing the implementation of fintech such as Bitcoin and Blockchain. Mark Carney spoke recently on the future of the financial services, and the transformative impact that fintech is likely to have.
Bitcoin’s profile has also been raised by recent news surrounding cyber security, in which ransomware is being used increasingly to charge victims sums of money in Bitcoin