Following a period of steady performance, Bitcoin continues to be doing very well with its price currently set at $970 on Bitstamp. Earlier this week, Chinese platform OKCoin hit a record high by trading the cryptocurrency at $1000. After regulators tightened rules on Bitcoin exchanges, requiring them to introduce transaction fees, the main trading volume has moved to platforms that have not yet implemented the regulation.
There are several potential reasons behind the recent success of the cryptocurrency. One of the possibilities is that Bitcoin offers Chinese businessmen a convenient escape from capital controls. Another hypothesis is that trust in the cryptocurrency is gradually building up, as a result of which more people are buying so media attention increases, thus leading to Bitcoin’s organic growth. Yet a third explanation is rooted in politics, claiming that Trump’s immigration ban might be causing insecurity, thus destabilizing traditional stock markets and reversing capital flows, benefitting Bitcoin. Analysts predict that if taxes in the USA rise, cryptocurrency is set to become even more popular due to its transnational, tax-resilient nature.