Yesterday, on June 6, the average weighted exchange rate of Bitcoin came close to another major threshold, which is $3000 per 1BTC. By the way, this is a new all-time high for the crypto currency.
For those for you who don’t know, at the end of the past week, the BTC exchange rate broke above $2500 driven by unprecedented demand for the crypto currencies. By the way Bitcoin’s peers like Ripple and Ether have also been showing positive dynamics so far. Over a couple of weeks, Bitcoin has broken a lot of new psychological barriers to come close to another one.
During the rally, the demand was especially high on such Bitcoin exchanges as bitFlyer (Japan), bithumb (South Korea) and OKCoin Huobi (China). As you can see, the key demand has been coming from Asia, which is why the exchange rate on those Asian exchanges was much higher than the one on European and American exchanges.
At this point, Japan and South Korea account for roughly half of the entire BTC exchange transactions, NordFX reports. As for the total market capitalization of all the crypto currencies has just set an all-time record as well. To be more specific, it’s above 100 billion dollars, with 49 billion dollars for Bitcoins.
Masterforex-V Academy experts report that the Japanese government and financial authorities’ decision to make Bitcoin a legal and official payment means in Japan has been the key driver for the current bullish trend seen in the market of the world’s major crypto currency.
At the same time, some experts predict that BTC is likely to reach $4000 over the next 8 to 14 months. However, given the current volatility in the BTC market, they don’t deny a temporary retracement all the way down to $1100 or so. Such drawdowns happen from time to time.
As for the reason why crypto currencies has been gaining popularity over the last few years, experts say that it boils down to the fact that today’s conventional financial assets and fiat money are unreliable and unstable. for instance, the stock market is in another huge price bubble, which is about to burst at some point in the future. Some of those experts say, that only crypto currencies are capable of surviving the forthcoming financial crises further down the road, which is why savvy investors have been loading up on Bitcoins as long term investments in their investment portfolios.
