Bitcoin is now at around $7,500, a steady upsurge from $5,000, the price recorded at the beginning of May. And this is causing a frenzy in the crypto community. Analysts are struggling to find the cause(s) of the sharp upsurge.
It however, remains a mystery, the reason for the aggressive appreciation of crypto figures. According to Lukeman Otunuga, a research analyst at FXTM, analysts haven’t found a major news factor behind the sharp $1000 jump.
So it has been fan’s turn to weigh in with competing theories. We have researched and compiled some of the theories running around in Reddit’s crypto community. Some can be very compelling, while others are farfetched. Anyways, here’s some of them;
Bitcoin’s Mainstream Appeal
News of Fidelity’s plans to begin buying and selling bitcoin for its institutional customers in the coming weeks is common knowledge. The firm is the largest asset manager in the world. Another major firm, Ameritrade, an online broker TD already introduced the trading of bitcoin back in December. And last but not least, Etrade, a securities brokerage is preparing its platform to make it crypto enabled for its users.
Other crypto enthusiasts think that the rising bitcoin figures are a result of other users migrating from other cryptocurrencies and investing into bitcoin.
A Reddit user going by Gonzales82 says that people realize that the idea behind bitcoin is far more substantial than any held by other altcoins. People are already migrating, and there is evidence to support this.
If you had a look at exchange data, you could not fail to notice a peculiar rate of conversion of altcoins to bitcoins. Data being recorded is proving that investors are possibly shifting funds from other cryptocurrencies for bitcoin.
Token Analyst Cofounder Sid Shekhar seems to be the support of the theory. She recently admitted that more bitcoin was being transferred out of exchanges than going in, perhaps a sign that people are storing more of bitcoin and getting rid of other coins.
Bitcoin’s Integrity Tested After Binance Hack
Last week, there was a hack on Binance and hackers made away with $40 million worth of bitcoin. In efforts to recover the funds, Binance CEO Changpeng Zhao proposed a blockchain rollback to reverse the transactions. But his suggestions were quickly watered down by a fierce backlash from many cryptos divides. This may have bolstered bitcoin’s image as a legitimate and fueled demand for the same.
Claims by bitcoin advocates of bitcoin being scarce and censorship-resistant became tangible when the notion of tampering with the chain was run down in hours. This possibly made an appeal to a lot of people why bitcoin was valuable than any other altcoin.
Proceeds From Bitfinex Scandal?
Sanderson22, another Reddit contributor was also of the opinion that bitcoin was profiting from yet another scandal; Bitfinex.
Recently, a New York Attorney General filed a lawsuit against Bitfinex exchange owner for draining over $700 million from its reserves that backed tether to cover $850 millions of missing funds. The Bitcoin price rise could be as a result of people running away from Tether to Bitcoin.