This year’s price trend has been one of those that gained a lot of attention over the years. Bitcoin is reaching its all time highs with the highest peak at $1,290.79 on March 03, 2017 according to Coindesk Bitcoin Price Index. Then, it fell hard to $1,117.02 on March 10, 2017 and as of this time of writing, it bounces back to $1,229.54. So, what are the main factors today that obviously drive Bitcoin’s price to rise and fall?
Here, we collected three of the main factors that we think are affecting the price of Bitcoin today:
1. Bitcoin ETF decision
On March 10 this year, Winklevoss twins’ Bitcoin ETF proposal was rejected by the US Securities and Exchange Commission. This decision has greatly affected the trading markets where a massive and rapid sell-off happened and BTC price has even gone down to $960 on Kraken. However, whatever decision was made on the ETF, it will still create a big impact on the Bitcoin price. Some people may think that SEC ruling to Bitcoin might be a scary one and some would think that it would make trading in Bitcoin more accessible to institutional and individual investors.
What is Bitcoin ETF?
ETF or Exchange-Traded Fund is basically an investment medium that will track the performance of a certain asset. Such that if you want to invest in oil because you think its price is about to explode, then you do not have to buy the actual asset but instead you just need to buy an oil ETF.
For Bitcoin ETF, it is a kind of ETF that will resemble the price of Bitcoin. A trader does not need to store and secure coins but rather hold a Bitcoin ETF. ETF trading is planned to be done in Bats Exchange.
According to a released public notice by the US SEC, the reason why Bitcoin ETF was rejected because of its lack of surveillance-sharing agreement and regulation and the role of SEC is to prevent possible fraudulent and manipulative acts and practices in the industry.
2. Trading volume in China
Another factor that affects Bitcoin price is the trading volume in China and apparently Bitcoin developments there creates a big impact on it. This is a result of Yuan’s devaluing and Chinese government limits the flow of money out of the country. In response, people in China exchange their Yuan money to Bitcoin and exchange them for US or Euro dollars, as a way of getting their money out of the country. Thus, there is a great demand for Bitcoin happening in China today than in any other countries.
3. Increase in adoption
With Bitcoin price reaching all time highs at the start of this year, it creates more exposure to around the world. Thus, interests and support from individuals and large institutions are increasing. Developments and innovations on the cryptocurrency are more likely spread eventually.
Future prediction – bitcoin price will still soar amidst the sellouts and downtime. It will just take a matter of time to be able to comeback from these minor challenges.
If you like this article, please subscribe to our blog feed or you may like us on Facebook. For comments, reactions and suggestions, feel free to to write and submit them below.