Bitcoin suddenly rocketed today, gaining a value of £772 ($1,000) in less than 24 hours. The currency has steadily gained ground over the last week, rising from less than £3,090 ($4,000) to £6,257 ($8,100) today. In five days Bitcoin rose from £4,635 ($6,000) to £6,180 ($8,000). The latest development is the highest Bitcoin has reached since July 2018.
What caused BTC to rise?
Over the last two weeks, there has been no clear cause of investor’s increased interest in Bitcoin.
Recently, however, digital asset exchange Bakkt announced it would begin user acceptance testing for Bitcoin futures contracts in July.
This was expected to have bolstered Bitcoin’s mainstream appeal and increase demand.
While this will add gradual interest to Bitcoin’s overall worth, an ongoing gathering in New York is giving Bitcoin its short-term burst.
Blockchain event Consensus started on May 13 and will continue until May 15, with some of the World’s biggest investors gathered for the conference.
According to Ben Reynolds, VP of Business Development and Digital Banking at Silvergate Bank, the event provides the “most significant return on investment” from any conference.
The event also offers “breakthrough protocols, engineering hacks and encryption techniques” which will likely increase people’s confidence for investing in Bitcoin.
Simon Peters, an analyst at trading platform eToro said this could be the start of a long-running positive trend for Bitcoin.
He told The Independent: ”If we see institutions begin to pump serious money into the market, we could be at the start of a very long bull run for cryptoassets.
“As crypto’s true believers gather in New York for Consensus this week, they are counting ever-more household-name companies among their number.
“This is good news at the start of a big week in crypto, we expect more price moves over the coming days.”
While Bitcoin has seen a meteoric rise in recent days, it doesn’t quite compare to the progress it made in 2017.
In just two days during December 2017 the currency rose from £9,270 ($12,000) to £11,587 ($15,000).
Bitcoin then drove forward to its top £15,063 ($19,500) price before it crashed, ending it into a downward spiral.
Now investors are hoping the currency will start to gain ground again, and some have even predicted it could be worth $1 million by 2020.