The value of bitcoin was recorded back through Rp. 100 million or equivalent to US $ 8,000 (exchange rate of Rp. 14,200). This increase was the highest since July last year.
So what happened?
Financial market observers consider this reinforcement an opportunity for a bright future for bitcoin. It's just that the history of currency instability has triggered many doubts.
One of the founders of Interchange, a company that explores digital currencies, Dan Held thinks bitcoin is very risky. It's just that strengthening value can be a better choice when the bond or gold market is not good.
Also read: Crypto Ballad
In addition, when the Dow market fell 617 points, Bitcoin actually strengthened. This shows investors are turning to bitcoin as a safer asset.
"It's time for bitcoin to shine when people give up when people give up on the government and the banking system," Held was quoted from CNN on Wednesday (05/15/2019).
Head of the TradeStation Product Strategy, James Putra, assessed that the strengthening of value in Bitcoin was considered as the beginning of an improvement. Because, this can attract interest for investors.
"When the market starts to rise, this attracts more people," James explained.
For information, the value of bitcoin had previously reached US $ 20,000, equivalent to Rp. 284 million in December 2017. Only then did the value of the fall in the following years. This is also considered by observers as a period of 'speculative mania'.
Two academics from the University of Texas at Austin assess bitcoin manipulating prices by gathering evidence throughout 2017.
"In this condition there may be manipulation. Bitcoin prices and the price of crypto are purely driven by small traders' supply and demand, ignoring this market specific mechanism," said John Griffin, finance professor at the University of Texas.
"It's not too difficult to find manipulative activity behind the recent increase (bitcoin)," he said.
In addition, other strengthening explanations are due to bitcoin holidays or blockchain week and 2019 Consensus. Both events attract more buyers in bitcoin and other major currencies.
According to Lennon Sweeting, Coinsquare Director and Merchant Director, there was also the fact that the strengthening was also due to JPMorgan Chase (JPM) bank, announcing new digital coins earlier this year.
All of that can make the digital currency and its technology more attractive to investors. So that gives a reason for strengthening Bitcoin to remain optimistic
