The price of bitcoin is right now being driven by few things:
- Demand vs Supply
- The supply of bitcoin is limited and the demand is increasing everyday, which is leading to insane price
- FOMO (Fear of missing out)
- This is the biggest reason - the more bitcoin is rising the more people think that they are missing out on something which can make them rich quick. So, they are joining the rally and making it go higher
- How to buy other Altcoins
- Right now there are tons of other Altcoins in market and Bitcoin is the primary currency to buy all of them, which is further driving the price up
Now coming to the crash - rather than a crash, I think the price will correct to 9,000 - 10,000 USD levels once its’ Futures hit the exchange starting from 10th Decemeber, because then people will have a way to short Bitcoin unlike now. But that correction will lead to further round of buying and the price should stabilize around 10,000 USD.
Whats the way out - Dont put all the eggs in the same basket. I have build a cryptocurrency portfolio, and I plan to rebalance it every month. You can track the same at http://bit.ly/2k289nA
Note - Things that rise fast can also fall equally fast, so be cautious with your money and invest as per as your risk