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What’s Driving Bitcoin’s Price Toward $3,000?

Last Updated March 4, 2021 4:57 PM
Benjamin Vitáris
Last Updated March 4, 2021 4:57 PM

As of June 6, 13:20 pm, the price of bitcoin was standing on $2,965 on the BraveNewCoin (BNC) global index. After a corrective move down to $2,823, the cryptocurrency resumed its uptrend, trading on $2,850 at the moment. In addition to BTC, Ethereum has also reached an all-time high beyond $250 shortly after ETH inventor Vitalik Buterin had a brief conversation with Russian President Vladimir Putin. However, the question is: what is the reason behind bitcoin’s continuous trend toward $3,000?

Bitcoin has been in a huge demand in Asian countries, who had contributed to the price surge of the cryptocurrency in the past too. However, after the Cabinet in Japan accepted a bill in April officially recognizing virtual currencies, including BTC, as real money, the number of bitcoin investments increased in the country. CCN.com reported earlier that there is also a growing interest in the digital currency in South Korea too. Following the Japanese example, South Korea is planning to introduce regulations on bitcoin this year, which would also have a surging effect on the cryptocurrency.

China has long been a major trading market for bitcoin. However, in January, the three biggest exchanges stopped margin trading because of an inspection by the Chinese government. However, on June 1, the three-months-long bitcoin withdrawal freeze came to an end as exchanges resumed trading the cryptocurrency. Now, as the two major exchanges in China (OKCoin has resumed withdrawals a day before) are back to trading, it could also have an impact on bitcoin’s uptrend to $3,000.

Since it is common to share investment tips in the region, Asia is the major supporter of cryptocurrencies with a booming investment culture. A CoinMarketCap ranking shows that Japan, China, and South Korea are home to several high traffic cryptocurrency exchanges (OkCoin and BTCC are standing on the 6th and 7th places, respectively).

According to the CNBC , one reason behind the recent uptrend of BTC is the May announcement of Minneapolis Federal Reserve President Neel Kashkari saying the blockchain technology “has more potential than bitcoin itself”. Bloomberg  also claimed that along with the increased political uncertainty and interest in the cryptocurrency in Asia, the greater acceptance of the blockchain tech is playing a major role in bitcoin’s surge.

CNBC also reported  on May 9 that Kashkari’s announcTestTestement was the major reason for BTC’s uptrend. However, CCN.com published an article about a week after CNBC, saying the opposite. Obviously, as listed above, there could be many reasons for bitcoin’s current surge. Therefore, there is only a slight chance for Kashkari’s announcement to have such a huge impact on the cryptocurrency. A part of the Federal Reserve President’s statement goes by:

“I think sentiment has shifted in the markets, in the Fed. I would say I think conventional wisdom now is that blockchain and the underlying technology is probably more interesting and has more potential than maybe bitcoin does by itself.”

For a real-time BTC price chart, click here.

Featured image from Shutterstock.