All the theories behind bitcoin’s recent price surge via @YahooFinance

As reported by Yahoo! Finance, “Bitcoin (BTC-USD) is back.

“The cryptocurrency has risen by over 100% against the dollar since the start of the year and over 50% since the start of the month. As of Tuesday, bitcoin was trading at a 10-month high above $8,000.

“What’s behind the recent price spike? Everyone has a theory, but no one quite knows for sure.

“’It’s kind of like saying why is there GDP growth that’s positive today — it could be many factors,’ Tim Byun, the US CEO of crypto exchange OKCoin, told Yahoo Finance UK.

“Here’s are all the main theories behind the recent price bump.

“While bitcoin has been trending higher throughout 2019, it has spiked 30% since Friday.

“That coincided with US President Donald Trump slapping 25% tariffs on $200bn-worth of Chinese imports at the end of last week and China retaliating in kind on Monday.

“The tit-for-tat trade war sent stocks tanking, with the S&P 500 (^GSPC) and the Dow (^DJI) both falling more than 2% on Monday.

“As a result, some market commentators think bitcoin’s bull run has been fuelled by investors dumping stocks and buying bitcoin as the trade war heats up.

“’It’s a natural hedge,’ David Siemer, CEO of blockchain-focused investment firm Wave Financial, told Yahoo Finance. ‘The pitch for crypto for people like me has always been that it’s a non-correlated asset with the stock market, and it’s proven that a lot of times.’

“David Cheetham, chief market analyst at trading platform XTB, said: ‘As is often the case with such an opaque market it is hard to definitively state what has caused this rally, but the recent escalation in US-China trade tensions seem about as plausible reason as any.’”

Continue to read the full story on Yahoo!.

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