Bitcoin prices have more than tripled since the start of the year, rising sharply amid strong sentiment and bullish momentum. The flagship cryptocurrency is currently valued at £8,515 (£10,850) at 10.40 BST on Monday, June 24, according to Coinbase.com data. And this significant sign of strength has led some to wonder what is the cause of crypto’s current price boom.
Bitcoin started the working week by surged above the symbolic $11,000 mark, hitting a 15-month high in the process.
This coincided with social media giant Facebook’s high-profile cryptocurrencies project pushing crypto back into the spotlight.
Bitcoin investors seem to have shaken-off memories of 2018’s bitcoin bubble burst after it hit a record high of over $19,000 (£14,900) in December 2017.
The price of the cryptocurrency infamously plummeted over the course of last year and it fell to the low of $3,000 (£2,352) at the start of 2019.
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What is causing the bitcoin price boom?
There is undoubtedly bullish sentiment surrounding bitcoin and the wider cryptocurrency market at the moment.
Joshua Frank, cofounder of digital analytics platform TheTIE.io, outlined the reasons for investors’ current optimism.
He said: ”We are currently experiencing the most prolonged period of positive long-term sentiment since mid-2017, which led up to Bitcoin hitting $20,000.
“Bitcoin’s 100 day average sentiment score turned positive on February 17 2019 when bitcoin’s price was at $3,673.11 and has remained positive for 120 consecutive days.
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“Since turning positive the price of Bitcoin has more than doubled.”
Analysis of social media activity is another seemed positive sign for bitcoin and the wider crypto sphere, with experts noting how bitcoin mentions on Twitter at their highest levels since December 2018.
Mr Frank added: “We are also witnessing a massive increase in the percentage of tweets coming from unique twitter accounts.
“Not only are the number of tweets on Bitcoin increasing, but they are increasingly coming from unique users.
This metric hit an all-time high earlier this month.”
CryptoPatterns publisher Jon Pearlstone is among those emphasising the importance of altcoins’ (cryptocurrencies other than BTC) price movements play in pushing up bitcoin.
He said: “Most large altcoins including ethereum and litecoin have not broken out of recent bull patterns like bitcoin did over the weekend.
“If they join bitcoin in breaking out, this would be a sign of strong bullish sentiment and should bring a test of $10,000 and potentially higher targets for bitcoin.”
But it was most likely one altcoin which has yet to actually launch that is most responsible for boosting bitcoin – Facebook’s Libra cryptocurrency.
Jehan Chu, co-founder of Kenetic Capital explained: “The price surge is due to two major factors, one is an increasing consensus among the investment community that bitcoin is a legitimate store of value for the digital age, and two Facebook’s Libra cryptocurrency launch has forced every CEO to take crypto seriously.”
Blockchain is the underlying technology behind bitcoin.
Facebook’s project has, however, faced many questions from politicians and central bankers who are keeping a close eye on its development.
Bitcoin is now up more than 170 percent this year and shows little sign of slowing.
Bitcoin’s rebirth has also helped push up the price of other digital coins like ethereum, which has more than doubled this year.