Bitcoin is now used in various transactions. Using bitcoin offers a lot of potential benefits that cannot be found in any other payment platform. For one, it is definitely a low cost method to receive and send payment as you do not have to think of expensive transaction fees. The platform is also very fast and easy to use.
With bitcoin trade continuously flourishing, there are also concerns arising from the fact that the price of bitcoin is highly volatile. Although bitcoins have a lot of potential use and benefits, there are also concerns especially when it comes to price stability. Experts may agree that bitcoin can be a viable alternative to existing financial payment platform and infrastructure but there are several issues that have to be addressed first. The price swings is one of the things that should be taken into consideration especially for those who are into using bitcoin and those who are conducting bitcoin trade.
Current Bitcoin Price Increase
Despite the speculation regarding the recent downturn of bitcoin, it’s reported that Coindesk USD Bitcoin Price Index increased to about 10% at $443.69. Last 18th of September, the price of bitcoin dropped to as low as $387.76. But after the decline, bitcoin reached its peak . Majority of bitcoin exchanges in various parts of the globe reported an increase.
The speculations regarding the recent price downturn circulated around merchant adoption as well as the increase in industrial mining. In turn, these were said to affect the price while the current price increase has been attributed to news.
According to Raffael Danielli in his own blog Matlab Trading, he said that the positive linkage between price escalation and the news was inarguable based on the data charts coming from major exchanges.
Price Increase in Major Exchanges
Almost all major exchanges reported bitcoin price increase from 13:15 to 14:30 BST. It started after PayPal announced that online merchants can accept bitcoin via the different payment processors like BitPay, GoCoin and Coinbase. Now, merchants can accept these bitcoins via the PayPal Payments Hub.
In CoinDesk CNY BPI, the bitcoin price increase to ¥2,717.18. This is a 7.07% increase compare to the opening price of the day at ¥2,470.20.In the Hong Kong based Bitfinex, the price increased to about $397.06. As for the world’s biggest USD bitcoin exchange platform, the price increase to about $395.29. This figure is based on the data from the BitcoinCharts.
News and Bitcoin Price Increase
The said increase in the bitcoin prices across all major exchanges is attributed to a single news event. It followed after the publication of PayPal’s partnership through online publications like TechCrunch, Forbes and CoinDesk.
There are 3 major exchanges offering an investment tool that can be used by traders which include the Bitfinex, BTC-e and PkCoin. This tool places wager on future bitcoin performance. Along with the news of the price increase of bitcoin, the data also show that there’s a decrease in outstanding swaps. This only means that traders might have closed short positions.