Why bitcoin price increase so fast
The primary theory about the astonishing rally being put forward by investors on social media is that bitcoin will soon benefit from big institutional money injections via the introduction of the first BTC futures products. This ability makes bitcoin far more palatable to big investors who are currently flooding the market to make profits if and when the bitcoin price falls.
This group of enthusiasts bought and held bitcoin and will not sell it at any current price. More and more bitcoin fans are entering into this group and they are driving up demand increases. We see a common thread between these points: All cryptocurrency movements are based on domain specific media and conversations between traders. Bitcoin traders, it can be said, are now akin to the jolly colonists selling stocks under buttonwood tree.
That is all coming and at that point the market will harden itself against panics and booms. Until then we enjoy rises and dips and volatility that puts most bitcoin dilettantes off their lunch. Ultimately new and old users are testing the limits of a system that, for a decade, has been untested. The futures market will be a big driver in growth and bust over the next few months as institutional investors begin using the currency. Yes, to those who are betting big on BTC.
This article is published in collaboration with Business Insider. Publication does not imply endorsement of views by the World Economic Forum. A Bitcoin virtual currency paper wallet with QR codes and a coin are seen in an illustration picture. The views expressed in this article are those of the author alone and not the World Economic Forum. We are using cookies to give you the best experience on our site. By continuing to use our site, you are agreeing to our use of cookies.
This forgotten element could be the key to our green energy future. What happens when your child's invisible friend is an AI toy that talks back? Rosamond Hutt 22 May Chart of the day: China is leading a surge in electric vehicle sales Charlotte Beale 22 May More on the agenda.