At press time, Bitcoin has touched $640 USD, and everyone is celebrating. Bitcoin supporters are holding strong and enthusiasts are happy to see the price as high as it has been since 2014.
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The 2016 Bitcoin Rise: This Is Gentlemen!
As the value of Bitcoin grows, the currency passed the $10 billion USD market capitalization during the overnight of June 11.
People are wondering where the spike is coming from but if you watch the website fiatleak you can see quite a bit of purchasing in CNY.
China’s economy has had some troubling times this year, with its stock market crash, capital controls getting tighter, and fear over the devaluation of the Yuan.
But this speculation has been a key influence for quite some time and there very well could be other reasons for the rise.
Brexit fears are causing mainstream investors to be frightened as well, as there has been a massive swing of people supporting the UK exiting the EU. Forecasts suggest that this could be a troubling time for Europe, possibly leading to a recession much like the 2008 financial crisis.
The Brexit vote approaches, set to take place on June 23, and world markets are getting skittish. Areas to watch during the next two weeks are the bond markets and commodities along with everyone’s favorite cryptocurrency, Bitcoin.
One thing to consider: at the moment, Bitcoin’s market capitalization is now larger than Twitter (NYSE:TWTR), the popular social media application.
Alongside this great news, the cryptocurrency is bringing up a lot of flashbacks as many investors have seen their 2014 losses come back. The price hasn’t been this high since early 2014, which marked the start of a year-long bearish slump.
Throughout many forums and social media platforms, the celebration is quite vivid. Memes are blasting through the threads with jokes, and reminiscence about the last time the price was this high.
Others have cited Mike Hearn’s exit remarks when he said, “But despite knowing that Bitcoin could fail all along, the now inescapable conclusion that it has failed still saddens me greatly. The fundamentals are broken and whatever happens to the price in the short term, the long-term trend should probably be downwards.”
To many, the good old days of Bitcoin are back, and people are feverishly excited about the sudden price spikes. In fact, the top 5 cryptocurrencies according to coinmarketcap.com are all climbing which include Ethereum, Litecoin, Ripple, and the DAO’s native token.
However, some are not so enchanted by the rise and say, “one bitcoin = one bitcoin,” and that the fiat calculations don’t matter.
Despite this opinion, it is safe to say that many people will be selling for fiat at different points if the rally continues. Some will be looking to exit at the same price they did in 2014, and some will be hodling for much longer terms.
There are still community members who still believe this sudden rush in volume has to do with the upcoming block reward halving expected on July 10, but others are unsure that this is the cause.
Whatever the case may be, eyes are glued to the charts, and there are quite a few very large green candles.
What do you think about Bitcoin’s sudden price spike to $640 per BTC? Let us know in the comments below!
Images courtesy of the Great Gatsby, Crypto-grahics.com.