Bitcoin prices surge, here's why cryptocurrency is skyrocketing

Bitcoin prices are skyrocketing. Business Insider reported Thursday bitcoin hit a record high, exceeding $2,700 per coin, up from $1,400 on May 1. The world’s second most influential cryptocurrency, Ethereum’s ether tokens, also broke its record this week. Ether is now evaluated at more than $200 per token, CoinMarketCap reported. For comparison, ether was selling for just $60 on April 27.

There are a variety of factors driving up the market value of cryptocurrencies.

The past few weeks have seen increased corporate investment in Ethereum, alongside a global “blockchain boom,” where companies like Ripple and IBM announce partnerships with leading financial institutions around the world. Japan has even kickstarted the process of recognizing bitcoin as legal tender. “I think it’s mostly to do with the fact they may have ended the ongoing political stalemate over scaling may be over,” Andrew Keys, head of global business development at blockchain software developer ConsenSys, told CNBC. Many experts say economic shifts in China are another key component behind soaring bitcoin prices.

The Chinese yuan is suffering from poor performance in local equity markets and rising interest rates. Jeffrey Gundlach‏, CEO of DoubleLine Capital, tweeted about the falling Shanghai Composite Index on Tuesday, theorizing the Chinese are now searching for safe investments outside China. Although Chinese markets are far from crisis, Gundlach’s tweet‏ implied waning prices sent a wave of Chinese buyers to bitcoin. Chinese blockchain expert Patrick Dai, founder of the smart contract platform Qtum, told International Business Times he thinks China’s bitcoin market is one of the factors driving up bitcoin prices.

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Source: Bitcoin Prices Surge, Here’s Why Cryptocurrency Is Skyrocketing – International Business Times