In case you are wondering what is going on with the recent increase of the BTC price these days, you have multiple factors to take into account. While they may or may not be the reasons, the following events must still be described in order to make personal inferences to whether or not any of these events have any actual impact on the current price of the bitcoin compared to previous week and beyond.
Brexit is a historical June 23rd referendum vote for Britain to leave the European Union. One cannot be entirely certain, as of yet, to assume that the political event has direct financial implications on the cryptocurrency world, and in particular the Bitcoin. Yet, because of the current global market volatility, it could be assumed that traders, investors, and others who are familiar with bitcoin, would tend to purchase even more bitcoins, Satoshis, etc. in exchange for their native currencies.
Circle – China’s Entrance Into The Crypto
With the recent news that Circle is investing $60 Million to make the company favorable to buy/sell bitcoin internationally, the major market for its business is China. This means that Circle’s bitcoin transactions could strongly increase after it gets introduced into the Chinese markets. As with any financial markets, stocks, indexes, and foreign exchange trading, the good time to accumulate more of any of those assets is during the times of news and events that cause an uncertainty in the current markets. This means a potential signal for those traders and investors to see higher return on their investment if future value would rise to their favor. The same could be seen with the news of the $60 Million increase in market cap of Circle. Now could be the time that demand for bitcoin rises, as those individuals familiar with the bitcoin technology would go into the race to buy more while predicting a future increased demand in bitcoin after the Chinese markets through Circle would join the BTC rush.
Halving 2016 – Change in Bitcoin Mining Algorithm
The final major indicator that could justify the current price rise in bitcoin is the expected bitcoin halving that would occur in less than a month. The “Bitcoin Halving of July 2016” phenomena might be another reason why many now buy more and more bitcoins or portions of bitcoins. The after-effect of halving could signify a change in the algorithm for bitcoin mining, making bitcoins harder to mine, and thus causing the supply increase of bitcoin lag behind the demand. The hypothesis cannot yet be proven for the anticipated halving to be the major reason for the bitcoin price increase by over $200 within a month time-frame. Some indicators still tend to favor this suggestion in that it might be wise now for bitcoin holders to stack up on even more holdings while the price is yet sufficiently affordable. There is no precise forecast of the bitcoin price following the halving. With this in mind, the demand for BTC is expected to rise up until the actual date and time of this event.