The spectacular rally of the price of bitcoin in the past two days – it hit the $492 mark in the afternoon of November 4, 2015 – provoked numerous discussions and speculations as to the reasons behind the spectacular increase. At press time the price had fluctuated down to $393 dollars according to the Coindesk Bitcoin Price Index.
CoinFox’s Alexey Tereshchenko reached to the experts for a commentary. Louison Dumont, founder of Founder at Bitproof.io, developer and entrepreneur, explained the rally as follows: “I really can't tell J I just think that it got a lot of traction in the last 2 years, that hundreds of thousands of people have been waiting for the new $1200 for the last 2 years and that things start to heat up.”
The comment of the Head of European Banking Relations at Kraken Liliya Vershinina was laconic: “I am afraid that this is really hard to explain; I don’t really know.” Peter Kirby, CEO at Factom, assessed the situation in even fewer words: “Demand exceeds supply.”
The CEO of the first Caribbean-based bitcoin exchange Bitt, Gabriel Abed, however, interpreted the rally in greater detail:
Reddit users observed the rally with mixed emotions. Some were delighted and recommended others to buy the digital currency on a spot. More experienced users, however, recalled the bitcoin rally and subsequent bitcoin crash of December 2013 and instructed newcomers to keep their calm. The members of the forum were quick to offer their own explanations for what caused the bitcoin rally. “I believe there is correlation between the bitcoin price and the amount of maymays on /r/bitcoin” wrote a user called Diedjies. “Maymay” is a technical term for a popular but useless phrase used on the forum.
In turn, at the BTC-e bitcoin exchange various players were buying digital currency and also discussing the rally. Some users of the Russian version offered alternative explanations, such as the one by the user Anigfs: “The Federal Reserve is behind it”.
Now we ask you, the CoinFox readers: what is your explanation for the recent rally of bitcoin? Share with us your opinion in the comment section bellow.
Diana Bogdan, Alexey Tereshchenko, Roman Korizky