14 DAY TRIAL // The value of digital currency Bitcoin topped $1,000 on the first day of the year, following a 125 percent yearly increase since 2016 and marking the first time it goes past this milestone since 2013.
While Bitcoin’s last three-year performance was full of ups and downs, 2016 brought a pretty steady increase, with the digital currency jumping no less than 2.5 percent on January 1 to reach $1,022. On January 3, 1 Bitcoin was rated at $1,016.
The last time 1 Bitcoin was worth more than one thousand dollars was in December 2013, when it reached no less than $1,200. A series of unfortunate events, however, caused the cryptocurrency to collapse shortly after that, with Bitcoins dropping at some point to approximately $250.
One such example is the famous hack of Mt. Gox exchange, which dramatically affected the Bitcoin value in the short term. Stability has increased gradually, and 2016 brought a substantial increase that peaked on the first day of 2017 when this historic threshold was reached once again.
Possible causes for the Bitcoin value boost
As for the causes that could have led to this boost in Bitcoin value, it’s believed that two different events in Asia were responsible for the spike.
First of all, analysts believe that the Indian government’s decision to pull high-denomination bills have encouraged more people to look for alternative currency, and Bitcoin benefitted from the transition. Furthermore, China’s tighter control of the yuan also pushed wealthy people in the country to Bitcoin.
Contrary to what many people believe, analysts don’t see any connection between the rising value of Bitcoin and the election of Donald Trump, even though the boost was started shortly after the presidential race in the United States came to an end.
Overall, however, Bitcoin value is on the rise once again and it’s believed that the growth would continue this year, especially as more governments across the world implement capital control measures.