How the $3,000 Bitcoin Price Spike Happened

Jun 13, 2017
How the $3,000 Bitcoin Price Spike Happened

The weekend saw a $3,000 Bitcoin price breakthrough. This was a notable surge in price when comparing it from the earliest part of June when the price reached $2,900.

Much like last week though, Bitcoin showed how volatile its price is as it dropped to almost $2,600. Despite the stumble, the price is slowly picking up again, much to the delight of the Bitcoin casino players. After all, players can make the most of the Bitcoin price movement predictions.

$3,000 price reach

Bitcoin price keeps on drawing people’s attention as it keeps breaking its own record throughout the early half of this year. On March, Bitcoin broke its historical high record of $1,200. Since then, the price keeps on climbing upwards. It was in May when the price jumped to astronomical levels. On June 11, the price reached a record high of $3,000.

Altcoin market gets affected by Bitcoin price movements

The increasing price of Bitcoin stems from the Asian market. Investors and other citizens in China are looking for a way to keep the value of their finances from falling as the yuan value decreases. Most of them use Bitcoin as a financial lifeboat for their asset.

Previously, the People’s Banks of China has set strict regulation rules for the country’s exchange by stopping the withdrawal of Bitcoin. Recently, most of the major Chinese exchanges resume its Bitcoin withdrawal options. This may have contributed to the recent surge in prices.

Another reason for the increasing price of Bitcoin is Japan’s acceptance of the cryptocurrency. More than 260,000 merchants and establishments are taking in the cryptocurrency through a point-of-sale tool. There is a massive increase in demand for the cryptocurrency in April. About 18 offshore markets have applied for a Japan Cryptocurrency Business Association license in April in order to meet the high demands.

The increase in price draws investors’ attention to another cryptocurrency as well. Many are using Bitcoin as a gateway to other digital assets. With interest for altcoin increasing, the cryptocurrency market is also maturing to a point that it can take in new inflows.

Bitcoin stumble

Just this morning when Bitcoin broke through the $3,000 price, its value plunged to the $2,650 level. Despite the $350 drop, the stumble seems to be temporary since the price went back to $2,900 in a short amount of time.

Analysts believe this is a price capitulation where the cryptocurrency is straying away from its fundamentals. The lack of momentum for the increase in price would likely mean for the decrease in the price of Bitcoin. The closure of long position in OKCoin that is worth millions of dollars may have something to do with the decline.

There are no immediate indications that could have a negative effect on the price of Bitcoin as of now. This major drop in price could be a reminder to investors about the extreme volatility of the Bitcoin. Bitcoin and another altcoin could experience a massive drop or increase in price without any prior warning.