Bitcoin price breaks new high due to three main reasons

Golden Finance News - According to foreign media reports, the price of Bitcoin has been bullish recently, with an increase of about 15%, breaking through $2,000. As of press time, the price of Bitcoin has exceeded $2,200.

(Bitcoin prices have been bullish recently, with an increase of about 15%. As of press time, Bitcoin prices have exceeded $2,200. Image source: Golden Finance)

In response, Charles Hayter, founder of CryptoCompare, said that there are many driving factors behind the price increase of virtual digital currencies.

National policy promotion

The policies of some countries have been promoted, and the regulatory policies have been positive in the past few months. Take Japan as an example. Japan has recognized Bitcoin as a currency transaction. This has led to a large amount of funds flowing into the Bitcoin market, and the price of Bitcoin has risen. And they hope that transactions will be more stringent, which has made the Bitcoin market develop in a good direction.

Bitcoin exchange rate difference

Bitcoin can be exchanged for a variety of currencies on exchanges around the world. Due to different fees, trading times and trading locations, these bitcoins are often traded at different prices, thus creating arbitrage opportunities. Because increased demand in one market can drive demand in another market, a large difference or increase in one set of exchange rates can drive the price of another set of exchange rates. For example, Bitcoin against the Japanese yen can drive the price of Bitcoin against the US dollar.

For example, Bitcoin is trading at $2,750 to the South Korean won. The won accounts for 5% of Bitcoin trading. And with the won trading at a significant premium, the Ethereum market is also out of touch.

( Japan has recognized Bitcoin as a currency transaction. Image source: Golden Finance )

People are increasing their investment in the digital currency market

Since the Ethereum Alliance announced the addition of 86 new members, its size has more than doubled. New members include Samsung, pharmaceutical giant Merck, Toyota, etc. People's attention to other cryptocurrencies has also led to an increase in Bitcoin trading volume. A large amount of funds have flowed into the Bitcoin market and then into other more attractive currency markets.