Cryptocurrency advocates woke up to the good news that bitcoin is trading for around $8,900. Bitcoin is expected to break $9,000 by next week as markets and regulators alike appear to be taking on a more bullish stance.
Bitcoin spent nearly 24 hours hovering in limbo. Stuck at the $8,600 mark, traders were unclear about whether the short, sporadic price hikes Fundstrat’s Thomas Lee recently spoke of would occur in the immediate future. Now, it appears the analyst’s predictions are inching closer to reality.
There are many alleged reasons behind the sudden price jump. A large one stems from French Finance Minister Bruno Le Maire, who recently did a “180” degree turn on his stance regarding bitcoin, cryptocurrencies and blockchain technology.
On the eve of the recent G20 summit, Le Maire, much like his British counterpart Mark Carney, penned a letter to the summit leaders in Argentina addressing his sentiment on the presence of cryptocurrencies in Europe. Unlike Carney, however, who’s letter contained a voice of newfound enthusiasm, Le Maire’s words possessed an air of worry, saying that they likely bore risks for both “novice investors” and the global economy.
Le Maire now appears to be sitting on the opposite side of the viewing table. He has since commented that he wants France to be at the forefront of digital currency study, and that he doesn’t want his country to miss out on the blockchain revolution. Hence, further recognition of bitcoin’s benefits has grown amongst European regulators.
In addition, China – which has been particularly stringent in its attitude towards cryptocurrencies as of late – shocked the world early this month when then governor of the People’s Bank of China Zhou Xiaochua explained at a press conference that digital currency was “inevitable,” and likely to take over the world of finance. He commented that cryptocurrency could very easily become the go-to form of money in the future, and that banknotes and physical coins could “shrink” or even “disappear one day.”
One source suggests that weaknesses in the stock market are potentially assisting bitcoin in its current price streak. Recent news struck that the Dow had dropped over 400 points, leading to what some are calling the worst week in two years. Ironically, the drop comes at a time when the market is finally turning around for bitcoin, thereby suggesting proof of a long-held ideal that bitcoin’s success may depend on slumps in traditional investing strategies.
Perhaps the biggest reason for the jump comes out of Africa, where bitcoin and related virtual currencies have remained hugely popular despite several up-and-down weeks. Long derailed by government and financial corruption, Africa’s economy has prospered from decentralized assets, and many bitcoin startups now call the continent home.
Finding work or a sustainable income of any kind is not always easy in Africa, and many enthusiasts claim that the money they’ve made on bitcoin allows them to live freer, healthier lives. Granted its popularity within the 54-country region, bitcoin’s price appears to be making a solid comeback.
During the early morning hours, bitcoin’s price seemingly increased by six percent, and cryptocurrency has added $20 billion to its overall market size.
Charts by TradingView