Bitcoin (BTC/USD) today resumed last week’s resurgence, climbing another 7.6% to $383 on Bitstamp and hitting a 3-week high.
Unlike the turbulent rally to above $500 one month ago, during which record volumes were reported, the latest mini-streak has seemingly been calmer. The average volume during the past week is a whole order of magnitude lower than that of one month ago, and more in line with the daily averages in 2015.
Another defining feature of the previous rally was the likely role of China. Prices on Chinese exchanges were frequently more than 5% higher than elsewhere, suggesting that they may have been dragging the markets higher. The China premium has virtually disappeared since then, though today it has climbed back above 1.5%.
CODI Finance Announces IDO Launchpad and NFT MarketplaceGo to article >>
Bitcoin is now 19% ahead of its 50-day moving average, and higher by the same amount year-to-date. Bitcoin had, until one month ago, traded in negative territory for all of this year. The turnaround was not expected by many, especially following this year’s August sell-off.
The strength of Bitcoin’s blockchain, as observed with the continuing increase in transaction traffic, may be contributing to renewed investor optimism.
“In our opinion the recent increase in price is the result of influx of investment and interest by banks and corporations, which are driving the expansion of the blockchain and related technologies,” said Kerri Dunn, Vice President at Kingsbridge Wealth Management, to Finance Magnates.
The firm, which oversees over $300 million in assets, also runs an alternative assets hedge fund. An early bitcoin investor, Dunn believes that there will be more price volatility “as the Bitcoin ecosystem and blockchain find their permanent place.” A short-term rise to $500 is not impossible, she said. Long-term, the price is likely to be dependent on how quickly the blockchain ecosystem develops.