Bitcoin’s price went up to more than a thousand dollars in an unusual price spike for the cryptocurrency.
This volatile virtual currency was able to rise from below $7 thousand to reach more than $8 thousand for a brief time in an unprecedented surge after several months of steady decline.
It may not be clear what made its value increase by a considerable amount. Some analysts speculate that breaking the $7 thousand price point may spark a surge in bitcoin investment.
According to the head of mobile at the fintech startup Revolut named Ed Cooper, the rise now does not appear to come from any significant news stories. He said it is likely that there is a change in sentiment today which was why the traders started to buy and increase the price.
The gains in price are a representation of the 12% increase since yesterday and a 14% increase week-on-week. In the past year, bitcoin increased by more than 500% in value.
As of the moment, bitcoin is trading at around $7.7 thousand on the Coinbase exchange.
Recently, the bitcoin slowly fell in value amid fears that the highs people saw in late 2017 came from the bubble.
In its peak, last December, the bitcoin’s price was close to $20 thousand.
Is it possible for bitcoin to recover from its worst ever start to a year?
According to cryptocurrency analysts, the bitcoin’s recent demise was temporary. They are predicting a turn in fortunes for the most valuable cryptocurrency of the world.
An expert spoke to The Independent early this month and said that bitcoin might return to its highs last 2017 and even push beyond it.
According to Michael Jackson, the former COO of Skype who now works in the cryptocurrency space, speculators drove the price but they suddenly had cold feet. Despite that, there is a lot of effort going on behind the scenes. It includes a new underlying technology that can power transactions faster. Regulators appear open-minded and they are now working to minimize the risks for consumers. There may be no reason for bitcoin to fulfill its dream. If that happens and the recent price falls will appear trivial.
The forecast came in contrast to the comments of the economists at Barclay’s bank. They labeled the price rise of Bitcoin last 2017 as an infection that spread like a disease.
This analysis suggests the falling price means that they treated the diseases. People may not see the gains of that scale again.
The economists said that they developed a theoretical model of an asset price that has a pool of speculative investors and compared this with the actual behavior of the cost of bitcoin. They did this to check out the future dynamics. Their model is parallel with the compartmental models of the spread of infectious diseases in epidemiology.