Bitcoin Price Rises with End of Chinese Holiday and Favorable Outlook from Major Financial Players!
The Bitcoin price has been fairly stable over the past few days, which is a good sign for many people. It has hovered around $260 according to CoinDesk’s Bitcoin Price Index as well as a few other price indexes. Many Bitcoin bulls were happy because a few days ago, the popular Bitcoin Investment Trust gained regulatory approval in the United States. The fund wants to make its shares available to trade in the over the counter market in the United States.
The move would bring increased liquidity to the Bitcoin market, which in turn would make Bitcoin more attractive to investors. Earlier in the same week, the Bank of England said that Bitcoin had the potential to revolutionize online payment. Some researchers at another bank, the Boston Federal Reserve, also had similar things to say when it came to Bitcoin. Some of the users at Reddit.com/r/BitcoinMarkets (a popular Bitcoin market analysis forum), are attributing the price increase to the end of the Spring Festival in China.
The Spring Festival break is an event where many workers return to their hometowns for a few days to relax with their families. The holiday ended a few days ago on Wednesday, which could explain the price increase since then. Other traders thought that the string of good news was the main cause for the breakout in the Bitcoin price. In the long run, the Bitcoin price has been trending downward since June of last year. Many investors thought that the price was somewhat inflated as it was. But, others think that the Bitcoin price was undervalued and will rise again.
Having a stable price is better for merchants and others who want to trade the currency. But, it is bad for investors who are hoping the Bitcoin price will increase in the short run. In general, the Bitcoin market isn’t as liquid as many people would like. It’s difficult to move large amounts of money around quickly for the average investor.
Assets like the Bitcoin Investment Trust will only help out the currency in the long run. What’s clear is that the use of cryptocurrencies in some way is too good of an idea to back down from for many investors and banking authorities around the world. For now, the Bitcoin price looks to be fairly stable, holding around $260.
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