Bitcoin Surpasses $4,000 Due to Strong Japanese Demand: CNBC
The price of the digital currency Bitcoin has passed the $4,000 mark on Aug. 12, 2017, driven by strong Japanese demand, according to CNBC.
The cryptocurrency has traded as high as $4,000.93, up by seven percent from its previous high of $3,941 and currently trades at $4,184 as of press time.
Bitcoin’s performance in 2017
The price of the virtual currency has now increased by fourfold in 2017, with an increase of around 40 percent in August alone. The market value of the cryptocurrency has also risen to about $64 bln.
Meanwhile, the trading of Bitcoin in Japanese yen has accounted for almost 46 percent of total trade volume worldwide.
The trading of Bitcoin in US dollar accounted for around 25 percent, while the trading of Bitcoin in South Korean won and Chinese yuan accounted for approximately 12 percent each.
Bitcoin’s solid performance in early August reflected that of gold’s amidst the selloff in stocks and bonds around the world due to the growing apprehensions over North Korea’s nuclear threat.
The tense situation has prompted investors to flock to perceived safe investments and alternative assets.
According to analysts, the excellent performance of Bitcoin in the market is also partly due to the digital currency’s ability to survive its split on Aug. 1, 2017, which saw the launch of the new digital currency Bitcoin Cash.
The split has resulted in the increased interest of investors, particularly institutional investors, in Bitcoin.
Bitcoin’s projected future
Despite its outstanding performance, Bitcoin still faces an uncertain future. The cryptocurrency could possibly split again in November 2017 due to the scheduled implementation of the second stage of the upgrade proposal dubbed Segregated Witness (SegWit).
In his Twitter post, Chris Burniske, author of the new book “Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond,” said that upticks in Bitcoin price and Google searches have historically resulted in price corrections.
He added that a sharp decline in Bitcoin’s price would not be surprising.