Bitcoin passed the $5,000 per unit valuation briefly on Friday, September 1, 2017, according to a report by Fortune.com:
The idea of Bitcoin breaking the symbolic milestone of $5,000 would have been unthinkable to most people at the start 2017, when the price topped $1,000 for the first time. If you’re keeping track, the digital currency is up 500% this year, and nearly 2200% since mid-2015, when it was in the doldrums at around $220.
“There appears to be no single reason for the recent run-up,” Fortune.com continued. “Instead, it can likely be explained by the same factors driving this year’s cryptocurrency bull run: Publicity-driven speculation; New financial products creating unprecedented liquidity; Trading surges in Asian markets; Institutional investors treating digital currency as a permanent new asset class.”
Here’s some additional detail from The Modern Investor:
In the hours and days following that price crest, Bitcoin’s value dropped to around the $4,700 level, increasing and decreasing around that value line based the perceived consequences of various news reports — as Bitcoin value very often does.
According to the recently released 2017 edition of the book, “Bitcoin Decoded,”
Bitcoin price is market-driven, and its price moves up and down on a day-to-day basis, just as other currencies float up and down when pegged to another currency.
The book continues, “Bitcoin price is driven by numerous other factors such as news, governmental actions, taxation, actions and motivations of buyers and sellers in the free market, and psychological factors such as fear and greed. Sounds like the stock market, doesn’t it? Bitcoin’s price is dependent on market forces.”
The Bitcoin Coaches believe the skyrocketing value of Bitcoin will continue to increase, as more and more of the world’s financial markets and analysts take note of its resilience.