Bitcoin surges by more than 70% in one month, but the reason for the surge remains a mystery

Sina US Stocks News: Beijing time on the morning of the 4th, the world's most popular electronic currency - Bitcoin has recently soared sharply, but no one knows the exact reason.

After falling sharply below $200 in January, Bitcoin rose to a high of about $410 on Tuesday. This price is 25% higher than the same time last year, but still far below the historical peak of $1,150.

The recent rally began about a month ago when bitcoin was trading below $240. Despite the fact that the price has been driven by favorable regulations for the digital asset and its related ecosystem, media coverage, and corporate investment, bitcoin experts are having a hard time explaining why the price has surged more than 70% in just one month.

By comparison, gold is down about 5 percent this year and is also down slightly this month.

Figure Bitcoin has recently surged

Some analysts attributed the surge in Bitcoin to investors' fear of missing out, while other experts, such as "Fast Money" trader Brian Kelly, believed that the Winklevoss brothers' establishment of a Bitcoin exchange and Digital Currency Group's announcement of financing from Bain and MasterCard were the main drivers .

But in fact, Bitcoin has continued to receive media attention and large-scale investment from major financial institutions throughout this year, so it is difficult to explain why there was a sudden turning point in the past month.

Brendan O'Connor, CEO of Bitcoin trading company Genesis Global Trading, said it is difficult to find the real reason for the surge in Bitcoin. Although there are rumors that some international traders have joined forces to push up Bitcoin, O'Connor said he could not confirm whether the rumors are true.

O'Connor said his Genesis Global has seen a sharp increase in trading.

"As the price started to move higher, people started to come in. We were hitting new all-time daily volume and transaction records," O'Connor said.

It is worth mentioning that Bitcoin is a market with poor liquidity, so its exchange rate against major currencies in the world has always fluctuated greatly. However, O'Connor said that the trading volume from the Chinese Bitcoin market has always been "huge".

In fact, Kelly suggested in a report on Tuesday that China’s tightening capital controls may be partly responsible for bitcoin’s recent gains.