So for those of you who were unaware, it seems starting the 2nd of the month, bitcoin seems that it is potentially starting a bull run up.
For many this is strange as the next month would probably be a very volatile month for Bitcoin as the scaling debate needs to be solved by early August. In my opinion, I'd see the next month cause a price fall for Bitcoin, but beyond all logic it seems to be going upward.
After some research I found the reason why the price is surging (or what I believe it is), and essentially it is new money flowing in from Japan. The article (Linked Here). The article states:
“The supply of virtual currency will be exempt from Japanese Consumption Tax (“JCT”). Currently, virtual currencies such as Bitcoin do not fall under the category of exempt sales, and as a result, the sale of virtual currencies in Japan have been treated as taxable for JCT purposes. Following the enactment of the amended Fund Settlement Law in May 2016, which newly defined “virtual currency” as a means of settlement, the sale of virtual currency as defined under the new Fund Settlement Law will be exempt from JCT. This change will apply to sales/purchase transactions performed in Japan on or after 1 July 2017.” (Listed Under Section 2 of "Consumption Tax")
This is basically reducing taxes for people who use Bitcoin in Japan. What do you think? Is this coincidence or the cause of the price increase? Let me know below.
