Bitcoin bulls are running, as prices spike above $11K. The Bitcoin price has already increased by $1,268.19 and has hit $11,203.90, a six-month surge, or an average boost of 12.73%. It is another indication of a resurgence, following a rough year of regulatory review and a decline in value in major cryptocurrencies. Both investor’s interest in technology and renewed confidence in their long-term future.
The spike in Bitcoin values represent the improved resilience of the network directly underground and distributes Blockchain technology more widely for cryptocurrency users.
What’s behind Bitcoin’s surge? Experts have several theories:
Bitcoin is renowned for its price, but it has been surprisingly quiet in recent months. Virtual money has been floating in a close band between $9,000 and $10,000 for nearly all of the last three months. Until a dramatic break-up over the last week.
On Monday, the price of Bitcoin reached $11,000, up from around $9,100 a week earlier. It is impressive considering how Bitcoin has struggled to hold over $10,000 on a few times when the barrier is reached, and how it hasn’t exceeded $10,500 in almost a year.
In an e-mail to Fortune, Eric Turner of Messari Research stated that Crypto traders were making huge profits from mysterious digital currency on so-called “DeFi” (decentralized finance) websites. Turner speculates that all of these traders have been plowing their earnings into the two most common crypto properties, Bitcoin and Ethereum, and pushing up the interest.
Another potential explanation for the latest price increase is a worldwide feeling of panic and confusion. These feelings will drive investors to search for commodities such as gold, which has been on the verge of pandemic and geopolitical instability. The Block study indicates that Bitcoin can benefit from the same phenomenon.
None of this provides a clear reason for Bitcoin ‘s current spike, though, and the new rally could . Like so many other crypto surges over the years — be a fleeting one.
