On Friday, October 20th, Bitcoin reached a staggering new high of $6,000 with continuing gains throughout the month. As far as 2017 goes, Bitcoin is up over 500%.
As the coin continues to rise, many investors have become scared that the price will suddenly bottom out. Most investors also do not have an answer to attribute the rise in price to. Some have stated that it is a cash shortage in Zimbabwe while others have stated an increase in margin trading is responsible. Both of these answers could be right, but also could be wrong. One thing is for sure, speculation still maintains a large role in the price of Bitcoin and cryptocurrency as a whole.
This push upwards on the price of the coin comes after the largest one-day drop in over a month where the coin almost dipped below $5,000. In the past two days, the coin has gone up over 500$ in value reaching this record high today.
The rally that occurred during the latter half of October could potentially mean that the looming threat of regulation is no longer playing a role in the price of the coin. Bitcoin worked quickly to go back up in price after Chinese regulation threatened the coins legitimacy and price as a whole. The coin then hit a record high on October 13th, and has since reached aforementioned record high’s as well.
The coin did dip in between that period by around 8.4% after the Commodity Futures Trading Commission released a statement regarding hopes to regulate the currency and that it could fall under their authority. This may have scared investors by a slight amount, but clearly not enough to have an extremely adverse effect on the price of the coin.