Why the recent bitcoin prices rose 64%?
CoinDesk bitcoin price index (BPI) in May 27th returned to near $590, compared to April 10th the price of $360, up 64%. The change of dramatic price occurred in recent days, about a month before May 19th, the price of bitcoin has been around $450, and then from the beginning of the day, prices began to rise steadily. (please see below)
Figure: CoinDesk BPI (April 25th -5 26)
The price of bitcoin may have crossed an important technical index. The price of bitcoin less than the beginning of February 50 day moving average price. Investors often according to the price of the price moving average number to one of the most important indicators of the trend of price.
Figure: Bitcoin Fifty Daily average and daily price, Two thousand and fourteen year One month -5 month
The price was recently broke 50 days average price, which may be an important technical index of a bull market.
The increase in volume
In the figure can be seen, the recent price increase is accompanied by a rise in the dollar volume.
Figure: February 2014 -5 month bitcoin dollar volume
From May 1st to 18, about 16000 a day to $bitcoin transactions. From May 19th to 26, turnover more than doubled every day to 41000 dollars bitcoin trading volume. But until recently the dollar volume also did not reach the Chinese bitcoin exchange can make the government to suppress the level of bank and docking.
Why bitcoin prices rose?
Unlike the previous price, this is not a significant event to promote bitcoin price growth.
From that bitcoin trading volume growth, may be a relatively large commercial use of bitcoin demand growth, which is probably the reason why the bitcoin price growth.
Figure: April 26, 2014 -5 month 26 days no day bitcoin trading volume
Although China further down the government, but Chinese bitcoin exchange transaction continues and is no longer like before that fear of being driven. In fact, CoinDesk bitcoin RMB price index shows that Chinese bitcoin trading volume also rose again.
Figure: March 2014 -5 month bitcoin weekly trading volume of RMB
Other bitcoin prices may include eBay CEO said the online mall is actively considering into bitcoin payments system. In the CoinDesk bitcoin report to this area, like the eBay, relatively large retailers accept bitcoin, bitcoin will lead to rising demand, thereby promoting bitcoin prices. But the recent bitcoin payment company BitPay won the vc.