Top Reasons Why Bitcoin’s Price is Rising Right Now
While Bitcoin’s market has been uncertain in the past week,
there is no doubt that the price is holding support surprisingly well. Even though there are quite a few issues that are hindering Bitcoin’s growth, there are also other events which are contributing to the cryptocurrency’s global adoption. This article will discuss the top 3 reasons why Bitcoin’s price is currently rising.
Wanna Cry Ransomware
I am sure you have heard of the recent world’s largest ransomware attack by the name of Wanna Cry, aka Wana Decryptor. The aggressive ransomware has infected over 200,000 machines and so far has collected over $80,000, according to @actual_ransom – a twitter bot set up to track the ransomware. While it is unfortunate that Wana Decryptor has plagued cyberspace, its coverage in the media has brought attention to Bitcoin, the only payment method accepted by the malware. Furthermore, the fact that the ransomware attack began amid Bitcoin’s price rally only contributed to the positive momentum, which is probably why the current support at $1700 is holding so strong.
Even though using a ransomware to spread awareness about Bitcoin might not be beneficial to the cryptocurrency’s reputation, the idea that Bitcoin is used by criminals is not a new revelation by any means. Most people who know about Bitcoin already know that it is used on dark net markets for illicit purposes, so any more news about it being used by criminals most likely won’t have much of an affect on the market.
Altcoins existed ever since Bitcoin’s creation. Up until this year, they have been considered second-rate projects as they were perceived to be simply clones of Bitcoin. However, as Bitcoin’s scaling debate intensified and users sought a solution, alternative cryptocurrencies started to flourish. The Flippening is a paradigm shift where investors are starting to look at altcoins as having value in different ways compared to Bitcoin. While at first that may seem like bad news for Bitcoin, the whole ecosystem shares the benefits.
While Bitcoin’s dominance among altcoins is dropping, according to cornmarket cap, cryptocurrencies’ overall market cap has been rising exponentially, it benefits Bitcoin as well. Just like altcoins benefited from new money flowing into Bitcoin, BTC benefits from the curious investors interested in the cryptocurrency niche as a whole.
Last but not least, one of the biggest driving forces behind Bitcoin’s meteoric price rise is Japan’s adoption and legislation of crypto. After passing official KYC / AML laws regulating exchanges in Japan, the government essentially green-lighted the legal operation of cryptocurrency exchanges.
The new legislation increased Bitcoin’s popularity in the country and also invited Chinese investors who were looking to escape the country’s tight grip on the sector. In fact, withdrawals for Chinese exchanges have been suspended for a few months now. There is a light in the tunnel as the PBoC released a statement which hints that withdrawals may resume soon. While there is no definitive date, rumors have it that things may settle in June. Chinese news resource cnLedger had the inside scoop.
Alan Zibluk Market Hive Founding Member