On May 27, CCN reported that bitcoin price went from $2,500 to $2,700 and fell to $1,900 on the same week, as fears of investors toward a short-term bitcoin bubble intensified. Despite the $800 fall, bitcoin has recovered relatively fast, stabilizing at $2,230.
Last week, exactly seven days ago, bitcoin price averaged at $2,000. On a weekly basis, regardless the 25 percent drop in value, bitcoin price has gained a 13 percent increase. Although many investors panicked when bitcoin price dipped below the $1,900 region and reached $1,870, the market has since recovered from a major price correction and any investors that purchased bitcoin last week have still seen a weekly gain.
Bitcoin price has increased by over 10 percent over the past 24 hours due to the increase in the demand toward bitcoin from major bitcoin exchange markets. Japan and South Korea in specific have maintained their premium rates throughout bitcoin’s rollercoaster-like rally and the trading volume of the Chinese bitcoin exchange market has significantly increased over the past two weeks.
Currently, China is the second-largest bitcoin exchange market behind the US, with a 16 percent market share and a $129 million daily trading volume. The majority of trading within China are processed by OKCoin, BTCC and Huobi that process nearly 90 percent of the country’s bitcoin trades.
The steady increase in the demand for bitcoin in China is important to acknowledge as withdrawals are still suspended for users on regulated bitcoin exchanges such as OKCoin, BTCC and Huobi. Until on-site inspections of the People’s Bank of China are completed, which most likely will be in June around the time the Chinese central bank is set to release its new set of regulatory frameworks for bitcoin trading, withdrawals will continue to be suspended.
Thus, the fact that Chinese investors are still investing in bitcoin knowing that they will not be able to withdraw their funds from their exchanges until June demonstrates the optimism of the Chinese bitcoin exchange market and investors toward bitcoin’s short and mid-term price trends.
The popularity of bitcoin is also rapidly increasing in India and South Korea. Zebpay, one of the three leading bitcoin exchanges in the country alongside Coinsecure and Unocoin recently revealed that its app has become the fourth most popular mobile app on the Apple App Store’s finance category.
South Korea is also demonstrating a staggering $600 premium, primarily due to the continuous rise in demand toward bitcoin from local investors.
Within one week, bitcoin price went from $1,700 to $2,700. As seen before, these short-term bubbles burst after a major market correction but the price always stabilizes at a higher point that the price at the start of the rally. In this week’s case, bitcoin price started rallying at around $1,900. Considering that bitcoin price is already back to the $2,200 margin, for short-term investors, it has been a good week overall.
More importantly, Bitcoin Core developer Eric Lombrozo publicly stated that he will help Barry Silbert and the Digital Currency Group’s Bitcoin Scaling Agreement project to completion and make significant progress in scaling. Such enthusiasm from the mining community, industry and Bitcoin Core development team could play as a major driving factor of bitcoin price in the upcoming weeks.
For a real-time bitcoin price chart, click here.
Featured image from Shutterstock.
Last modified: May 21, 2020 9:46 AM UTC