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The cryptocurrency is nearing the $600 mark which investors have been rallying for.
When it comes to bitcoin investors, conversation about bitcoin price is never far off. This week, investors really have something to talk about, as the digital currency moves towards the much hoped for $600 mark.
For the past several weeks, the currency’s price has hovered at around $450. However, valuations have been steadily increasing since Sunday, May 22, when bitcoin was priced at $438.77. Notably, there were significant spikes in bitcoin price on Friday, May 27 and Thursday, June 2.
After the past two weeks of unabated growth, the cyptocurrency looks like it will reach $600. As of Monday, the currency was priced at $583.69.
Big milestone for bitcoin
So what does it mean if the cryptocurrency reaches $600? It will mark a significant milestone for bitcoin investors who stuck with the digital currency, even when prices appeared relatively stagnant. In fact, there has already been a significant price record in recent days. CoinDesk reports that, on Saturday, June 4th, bitcoin price hit $591.03 – the highest price since August 2014. The fact that bitcoin price is rebounding to two-year highs is cause for celebration for many of these loyal investors.
Reasons for the price hike
The Wall Street Journal has attributed this price hike to Chinese investors who are moving money between asset classes in search of high returns. In the past twelve months, equities, bond and commodities markets in China have all seen massive spikes in investment. Moreover, two Chinese exchanges Huobi and OKCoin now collectively account for some 92% of global trading in bitcoin.
However, it has also been suggested that the anticipation of new bitcoin supply decreasing could also be a driving factor. New bitcoins are created by a complex computer process called “mining.” Bitcoin mining gets progressively more challenging over time, in order to restrict the amount of bitcoin created. Therefore, investors anticipating a constriction in the amount of new bitcoin being produced may be investing now to take advantage of an expected price hike.
Bitcoin investor takeaway
All told, the only thing that investors can do is let the numbers speak for themselves. Regardless of the motivating factors behind its price jump, bitcoin price is doing well and appears to be continuing on its upward streak. Keep watching the price index in the coming hours and days, in hopes of being the first people to see prices surge beyond the $600 mark.
Furthermore, to keep up to date with the latest bitcoin price news, follow us on Twitter @INN_Technology.
Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.