After a period of relative tranquility which lasted almost a month, the most famous cryptocurrency is again growing in price. The reasons of this surge are not yet clear.

Today the price of bitcoin crossed the $400 barrier for the second time since the beginning of 2015.

For most of the year it stayed below $300, giving the impression that notorious bitcoin volatility was over and the cryptocurrency found its natural price range. However, in October bitcoin started to grow. On 28 October, it passed the $300 limit and after a few days of tremendous growth reached $465 on 4 November. Among the suggested reasons were the growing insecurity of Chinese market, pushing people to invest in bitcoin, Chinese anti-corruption campaign and the decision of the EU court to make bitcoin VAT-free. 

However, the uptrend soon turned to downtrend and bitcoin price plunged to $310 by 11 November. Two weeks later it started to grow again, reaching a new peak of $370 after Bitcoin Black Friday, when more than 150 retailers offered discounts in bitcoin, and fell back predictably quickly after. However, as the end of year approaches, bitcoin price has started to grow again, reaching $400 today.

The volume of bitcoin transactions per day has also grown to 200,000 – a record surpassed only in the beginning of November when it for a short time reached 211,121.

Alexey Tereshchenko