Bitcoin succeeded to rise above the 700 dollar level approving the status phoenix-like asset. The positive tendency was marked on all leading trading platforms and shows the overall stability of the currency able to shake off unfavorable companions.
The 700 mark was beaten at BitStamp located in Slovenia receiving finally 710 dollars; other exchangers provide data on prices some points below the value. The CoinDesk Bitcoin Price Index (BPI) determined an average rise of 15%, giving a number based on several sources equal to 677,58 dollars per BTC.
Such trends were not present since the middle of February, right before the crash of Mt.Gox and related activities. The particular frontier is dated back to the 23rd of February when Mark Karpeles resigned from the Bitcoin Foundation proving the insolvency of his company and own incompetence.
The surprising turn desired by many, who did not dare to make any forecasts, has happened on the 3rd of March at 18.00 GMT exactly. At this point the trading volume has reached a peak long not seen. At that moment the price became $658 at BitStamp. BTC-e noticed same activity by 15 minutes earlier, but the price did not surpass 639 dollars.
On the time of preparation of the article the prices have stabilized, but the stir has cooled down.
The recovery is not a cause – it is a mere aftermath of several deeds. Some experts give the preference to single events, but it seems obvious that the combination was able to breathe some life in the descending market.
The first reason is seen in the reduced hysteria around the fallout of Mt.Gox. Details have been cleared or at least the situation has already deserved the required attention, now much is left up to the investigation and the attempts to recover missing funds. Investors see new opportunities due to the leaving of such a massive player.
At the same time the United Kingdom has revised existing rules and awarded Bitcoin users with reduced tax obligations. The simplification of the system attracted new ideas and human powers to the online cryptographic environment.
Also the Bitcoin community has noticed that a single buyer has acquired a big amount of coins. The situation is followed and posted on Reddit.
Mentioned factors could even out-power the global events like the destabilization of the political situation in the Ukraine, Warren Buffet’s criticisms of the currency and the drop of the Russian Ruble.
Financial experts warn users from exaggerated optimism as it is left to be seen, when the prices are going to reach levels set in 2013. Current interest might bring new participants and funds to the market, but only time will show how successful they will use the notorious experience provided by Karpeles, Shrem or the Silk Road.