Its rise has been phenomenal this year and it doesn’t look like it could stop. The world’s leading cryptocurrency Bitcoin has reached another high on Friday after the digital currency breached the $6000 line for the first time in its short history. This growth means that the digital currency has appreciated over 500% in value so far in 2017.
The main reason for this growth has been discussed by analysts and investors all over the world but no singular catalyst has been credited for this rise. What makes sense though is the fact that these speculations are the main reason why the currency has been rising.
This rise comes as a surprise to many after the digital currency was on the losing end three days ago. The loss is being attributed to the threat by regulatory officials in china and other countries who vowed to clamp down on the activities of these cryptocurrencies. This threat affected the currency for a short while as it bounced back and made a gain of over $500 on Friday. This allowed it to breach the $6000 mark and set a new record.
Cryptocurrencies have re-written history as their price action has defied the odds as they have beaten almost everything on the stock market. With the price of bitcoin going over the $6000 threshold, investors continue to troop in as they fear that they will lose out on massive profit if they continue to be skeptical.
The norm has been to purchase stock when the price is low and sell it when it is high. Bitcoin however has broken that norm as investors are purchasing the currency even at this astronomical fee. The reason is that bitcoins are mined, and at some point, analysts speculate that there will be no more bitcoin left to mine. Due to the scarcity that will become evident after that, investors are scrambling to purchase it while it is still available and sell it when the price goes even higher. It is expected that the price will go above $7000 before its next dip.