5 Reasons for the rapid bitcoin price rise

Over the last weekend, the price per bitcoin once again increased strongly: + 20%. The strong upturn in the course of course also attracted the interest of many experts.

Market observers see various reasons for recent price rises. Right at the forefront is the current "Brexit" debate, the increasing popularity of blockchain technology and, of course, the imminent bitcoin blockhalving.

Tim Enneking from the EAM Cryptocurrency Fund also sees the possible brexit as a spa driver. The Bitcoin Block-Halving The upcoming bitcoin halving, where the reward for the miners will be halved, will also be seen as a potential trigger for the price rise.

After the blockhalving, which is believed to be held on 10 July, the miners will receive only 12.5 BTC instead of 25 BTC per block. Rick Willard, founder CEO of Agentic Group LLC, said that the halving is expected by many people "with great tension" and compared the event with a "stock split". You Jun, co-founder of the Chinese Bitcoin stock market Huobi said the halving would shake the balance between supply and demand. He also said that the event is largely viewed as positive and the rising price is the first harbinger of it. The popularity of blockchain The emerging popularity of blockchain technology across all digital currencies is also driving positive signals in the market.

Willard believes that technology will increasingly gain entry into the commercial sector, especially in companies that wish to leverage digital rights to technology. Willard noted the strong growth as a "potential commercial mole. According to Ark Invest CEO Chris Burniske, another reason for the price increase could be the strong inflow of Fiat currencies. "We are fascinated by the stability of the ether in the currently rising Bitcoin course," says Burniske.

"For me, this is a clear signal that Fiat currencies like Euroyuan and US Dollar are flowing into Bitcoin and not just Ether in Bitcoin is exchanged. "The assertion that there was a strong bullish mood at the weekend is supported by market data from the Whale Club, where the longs were on the 11th and 12th of June at 75 and 94%, respectively. The Bitcoin offer on the exchanges had a hard time at the weekend and could hardly cover the demand. According to Petar Zivkovski, therefore, many of the price increases were not caused by an exorbitantly high demand, but rather by a very low supply, since hardly anyone wanted to sell Bitcoin:

"In this case, the low sales interest for a liquidity vacuum produced in the regular Buyers (no big fish) can significantly influence the price. "The China Debacle

As mentioned last week, many experts assume that China is the driving force behind the leap. Hayes predicts that the Federal Reserve will not increase the rate "in the foreseeable future" and that the PBOC will slow down or even partially reverse the depreciation. Joe Lee, founder of the trading platform Magnr also commented on the China debacle and the possible influence on the Bitcoin course. He mentioned several factors that could further stimulate demand for digital currencies: "Chinese demand for Bitcoin remains high and will continue to rise with continued uncertainty," Lee said in an interview with CoinDesk.

"Capital inflow will continue to remain constant. The IMF (International Monetary Fund) has just signaled an increase in the default risk of Chinese corporate bonds. "In contrast, Lee Bitcoin called a" natural protection "against such events.

English original version of Charles L. Bovaird II via CoinDesk