Just a week ago Bitcoin hit the $10,000 mark, now the cryptocurrency has hit another milestone, it has broken the $12,000 price range.
At the time of writing this article, Bitcoin is on its way to breaking $13,000, it is sitting at $12,701.55, that is an impressive gain in a week.
The Meteoric Rise of Bitcoin in 2017
In January of this year, Bitcoin was just under $1,000. It has grown massively this year, in May it hit $2,000 and then $3,000 in August. In October, it was sat at $5,000 and was at $7,000 in early November. It has grown considerably in the past two months and looks like it is going to continue to increase in price by the end of the year.
The rapid increase in Bitcoin’s value has been attributed to several factors. One of the primary reasons is the growing acceptance of Bitcoin as a legitimate form of currency. More and more businesses are starting to accept Bitcoin as a form of payment, which has increased its demand. Additionally, the limited supply of Bitcoin, capped at 21 million coins, has also contributed to its rising value.
Regulation and Its Impact on Bitcoin
We heard earlier this week that the UK and European governments intend to regulate Bitcoin and apply the same money laundering rules to it as they do with normal currencies. This appears to have had a positive effect on the price of the currency.
Regulation can have a significant impact on the value of Bitcoin. On one hand, regulation can provide legitimacy to Bitcoin, making it more attractive to investors. On the other hand, excessive regulation can stifle innovation and limit the growth of the cryptocurrency market. The announcement of regulation by the UK and European governments seems to have had a positive impact on Bitcoin’s value, as it provides a sense of security to investors.
Another factor contributing to Bitcoin’s rise is the increasing interest from institutional investors. Hedge funds, investment banks, and other financial institutions are starting to invest in Bitcoin, which has driven up its price. The introduction of Bitcoin futures by major exchanges like CME and CBOE has also played a role in legitimizing Bitcoin as an investment asset.
Moreover, the global economic environment has also played a role in Bitcoin’s rise. With low-interest rates and economic uncertainty, investors are looking for alternative assets to invest in, and Bitcoin has emerged as a popular choice. The decentralized nature of Bitcoin makes it an attractive option for those looking to hedge against traditional financial markets.
In conclusion, Bitcoin’s rise to $12,701.55 is a result of a combination of factors, including growing acceptance, limited supply, regulation, institutional interest, and the global economic environment. As Bitcoin continues to gain traction, it will be interesting to see how its value evolves in the coming months.
Source Coindesk
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