FX.co ★ Four reasons for bitcoin's stellar growth

Experts are unanimous in the opinion that Bitcoin has been showing fantastic results currently. Its price is soaring, hitting all-time highs. On August 14, the price of the popular cryptocurrency reached $4,260.12 after it touched $4,225.4 last Sunday. Bitcoin's market cap was up by $15 billion last week and up 320% in the past year. Experts say there are four reasons for the crypto coin's record growth. Let's check them out.

The current bitcoin's rally appears largely to be driven by a growing demand from Japanese investors. It has become very popular in Japan with bitcoin trade in Japanese yen accounted for 42% of the global trade volume. The country's government embraced bitcoin after legalizing it as a form of payment in 2017.

Another reason why bitcoin has surged in price is a growing interest from institutional investors. Most regulators show interest in the cryptocurrency. They are keen to invest in the development of the new technology. Thus, Fidelity Investments, one of the global financial companies, has introduced the function which lets its clients view their bitcoin and other cryptocurrency holdings stored in Coinbase.

One more reason for bitcoin's record highs is major changes in its structure. Almost completed modernization of bitcoin's network was served as a stepping-stone for its development. In the near future, it is also preparing to launch the SegWit2x protocol which is aimed to boost transaction speeds. This will allow investors to carry out more bitcoin transactions.

Another reason for bitcoin's skyrocketing rise in price is market perception of it as a safe haven. The new crypto currency has been given strong support amid growing global geopolitical tensions. According to analysts, the current conflict between the United States and North Korea has strongly influenced the growth of the cost of bitcoin. Increased interest in the crypto currency as a safe asset is shown by investors from South Korea. They are worried that Trump's actions could harm their economy.