2017 has been a year of highs for Bitcoin and other digital currencies. A few days earlier, Bitcoin surpassed the $17,000 mark. This means it is up by more than 1500% since the start of this year! The two major factors that affected Bitcoin’s price are probably the instituational investors and the Asian retail investors’ interest
Some other cryptocurrencies such as Litecoin and Ethereum are following the same route. Still, they do not have the size of Bitcoin’s success.
Below there are two major factors that are currently influencing Bitcoin’s price:
Institutional investors’ interest
According to a report from Bank of America, the institutional investors have caused the increased value of digital currencies. Many financial services companies are starting to offer virtual currencies in custom products. Bank of America claims that this could improve the market capitalization and liquidity for such currencies.
Institutions from Europe have taken the lead in designing new services and products using digital currencies. For instance, investors can track the price of Ethereum in Nasdaq’s Sweden exchange using exchange-traded notes. Also, the financial regulation authority of Switzerland has approved a product from Falcon Bank. It enables its clients to trade in Bitcoin. The banks of U.S are following the same path.
Recently, JP Morgan launched a payment network that relies on Ethereum’s blockchain. In addition, Goldman Sachs is considering Bitcoin trading. These moves are highly likely that will boost the cryptocurrencies value even more.
Interest from Asian retail investors
China and S. Korea may have a negative stance against Bitcoin, but that hasn’t discouraged investors’ interest in the digital currencies. As stated in reports, investors in both nations are paying a premium to invest in Bitcoin and other digital currencies.
The regulation of S. Korea has resulted in limited numbers of digital currencies and high demand. As an outcome, the Asian country has evolved into the greatest market for Ethereum.
Furthermore, Japan’s recognition of Bitcoin as a legal tender had played an important role in the increased values of cryptocurrencies this year.
The above mentioned factors have played an important role for the current price of Bitcoin and they are probably going to boost it even more in the future.