Will the Bitcoin Price Continue to Rise?

Will the Bitcoin Price Continue to Rise?

You’ve almost certainly heard of Bitcoin, the global cryptocurrency powered by blockchain technology. The value of the digital currency has recently risen sharply, encouraging more traders to open positions on it through Bitcoin brokers like UFX, which even allow traders to fund their accounts with the cryptocurrency.

The system underpinning Bitcoin is totally decentralised, since it is not controlled by any bank, national government or transnational organisation. Satoshi Nakamoto describes Bitcoin in her white paper, Bitcoin: A Peer-to-Peer Electronic Cash System, as “a purely peer-to-peer version of electronic cash [that] would allow online payments to be sent directly from one party to another without going through a financial institution.”

Since the start of 2016, the price of Bitcoin has risen by more than 470%. It reached its highest level – $2,400 – on May 28^th, 2017. Since April, a single Bitcoin has been worth more than 1 ounce of Gold. So, will the Bitcoin price continue to rise?

Hitting the psychologically significant $2,000 mark represents a breakthrough moment in the history of Bitcoin. It has resulted in a massive increase in trading volume, which could generate further interest among traders and boost the price further.

The news had an immediate impact on major centres of Bitcoin trading, including Japan and China, where trading volume increased by more than 30% in recent weeks, rivalling the amounts traded on the USD and JPY. Many experts had predicted this exponential growth after Japan officially recognised Bitcoin as a legal method of payment on April 1^st, 2017.

Central Banks make monetary policy decisions that usually have an impact on the price evolution of assets like currencies. However, since Bitcoin is not controlled by any Central Bank, it is a uniquely appealing asset for many traders.

Nevertheless, smart traders should remain vigilant when opening Bitcoin positions. It is a highly volatile asset, and the risks of sudden bullish or bearish movements are well-known. Risk management tools, like those found on UFX’s trading platform, can help you trade Bitcoin with a far greater degree of control.