The November rally is not slowing down. The price of Bitcoin increased $1000 only in a week and almost double its value compared to last month’s highest price. In fact, the Korean market has embraced this new record that Bitcoin is already traded at $10,000 per piece.
Alicia Cameron and Kelly Trinh from CSIRO mentioned 4 aspects that derive the sharp price increase over a short period, as follows:
- Animal spirits
- Political risk
- Regulatory moves
- Bitcoin’s governance
As in the animal spirits, they explained that many investors put on their money into Bitcoin market because they see the market trend of it being in a bullish run over time. Instead of looking at the hard analysis, they follow their intuition.
Bitcoin has been used to protect the wealth of people in certain countries with economic turmoils, such as Greek and Venezuela. We used to have gold as the safe haven, but it appears that Bitcoin might be more appealing.
Japan legalizing Bitcoin has impacted global Bitcoin price by 160% over 2 months.
The way people do things in Bitcoin environment might also derive the hype. Bitcoin has several hard forks already, in which they created new cryptocurrencies from the same data. Imagine if you have 1 Bitcoin and you will receive another 1 coin from the new cryptocurrency. The Bitcoin Cash event shows that everyone gained profit from the success: Bitcoin Cash is now worth US$1600, it means you get money for free.