Although the main criptomoneda had a slight setback this afternoon that took its price to 884 dollars, when it came to be hours earlier in 914.99, this does not seem to indicate that the currency has a return path. On the contrary, after the fall again it gained momentum and now - when it is 2:30 pm New York time - again climbed the top of the 900 and is at 901.11 dollars. Investors have turned to trading and have traded in the last 24 hours for $ 246 million, about five times what is traded on a normal day.
Now, why has this phenomenon occurred? It is important to comment, in principle, that the bitcoin market is quite reactive and sometimes becomes ven- tomatic, that is, sometimes not so easy to understand the reasons why the unexpected rises and falls. However, there is a key player that has influenced prices this year: the Chinese market.
China is the nation that dominates both mining and bitcoin trading, therefore one always has to look at what is happening there to predict the price of the criptomoneda. Exchanges like Huobi or BTCC set the standard in both prices and sales volumes. For example, at this moment in which a bitcoin is around 900 dollars in world average, in the exchange Huobi is in 916,85 dollars and in BTCC is in 906 dollars. Meanwhile, the Chinese currency, the yuan, continues to trend downward, prompting investors to seek shelter goods, as would be bitcoin. Also gold prices have been rising for the same reason, however, negotiations with the metal have complicated the Asians. Faced with threats by the Chinese government to restrict people's actions to protect their personal wealth, investors find in bitcoin a way to keep their capital safe, as imports of a commodity such as gold have been curtailed.
Obviously, given an increasing demand for the cryptomoneda, the offer strengthens its prices. But also the price increase calls new players to join the market that in times of boom becomes irrational. You can remind us a little what happens in shopping malls in the Black Fridays, when hundreds of thousands of frantic customers overflow for offers (sometimes they are not such and only get carried away by the collective frenzy).
Other reasons
However, although China is the main factor for the rise in price, there are others that weigh heavily. Smaller markets than Chinese, such as India and Venezuela, continue to have prices well above the average shown by CoinMarketCap. Also, new markets are gaining strength, for example, bitcoinha grown a lot in the last month in Australia, Colombia, Kenya, Malaysia, New Zealand, Norway, Pakistan, Russia, Switzerland, Thailand, Ukraine and Venezuela. This is revealed by the figures of the person-to-person market Localbitcoins. Also in the United States, transactions have increased.
The latest increase in the price of the Cryptomoneda also coincided with the news that Donald Trump chose a bitcoin supporter as the US Budget Director. The fact that the president-elect of the United States has given such notice makes the bitcoin community understand that there could be more support and less regulation of the cryptonnet in the main Western power. These forecasts, of course, are reflected in the price.
However, with respect to bitcoin it is always preferable to speak with relativity, since the cryptoneon is a very sensitive good, which usually gives unexpected answers.