Bitcoin, the largest cryptocurrency by market capitalization, continued to astonish investors as it almost double in 30 days breaking the $5,800 point on October 13.
The growth can be attributed to a number of positive market signals, including a strong trade in key Asian countries in the latter half of the period.
After flirting briefly with the $5,900 point, Bitcoin came back to $5,510 at the time of writing.
The latest surge marks an almost 97% rise compared to the currency’s low of $2,985 on September 15.
With the recent gains, Bitcoin is up almost 916% year on year.
Investor appeal seems to have rebounded after reports that Chinese regulators might reverse its stance on Bitcoin and other cryptocurrencies exchanges. In September, the government banned initial coin offerings (ICOs), as well as cryptocurrency exchanges, causing many of them to shut down.
In addition, some Russian authorities and officials, including president Vladimir Putin, have also made negative statements about Bitcoin, saying people involved in trading might be engaging in illegal activities.
Now Bitcoin has recovered, once again peaking investors’ interest. The recovery has been marked by increased trading activity in Japan, South Korea and Hong Kong.
Japan, in turn, is making fast advances, embracing Bitcoin as a legitimate financial instrument. In late September, its financial watchdog recognized 11 companies as registered cryptocurrency exchanges.
According to some analysts, indications of a tighter ICO crackdown around the globe, might have caused some investors to redirect money out of Ethereum and into Bitcoin.
Meanwhile, many analysts, investors and experts continue to make controversial forecasts about the future of the largest cryptocurrency.
After JPMorgan Chase CEO Jamie Dimon called it a “fraud” in September, some investors made bullish statements, predicting Bitcoin value to rise to $20,000 or more in the not-so-distant future.
And then again, while banks, large funds and Wall Street attention is expected to keep driving the currency’s value to new highs, experts warn that increased volatility and expected correction make investments riskier than ever.