Bitcoin has been struggling to stay above 230-240 USD for months ever since the bears washed away all of our expectations in August, but now, Bitcoin has started a new rally and what’s really exciting about this are the news. We have some serious and strong fundamentals to back up the technical analysis which is already indicating a clear breakout. Here’s why Bitcoin started to gain suddenly in the second half of October.
Corrupt FBI agent charged with extortion
Carl Force, a former FBI agent who was working undercover to help take down one of the biggest illegal marketplaces online, the Silk Road, was charged with extortion, money laundering and obstruction of justice. According to Reuters, In August 2013 Force conned the owner of Silk Road to pay him $50,000 USD in Bitcoins claiming he had inside information regarding the investigation.
Chinese banks interested in Blockchain technology
The banks in China have unofficially shown interest in the technology behind Bitcoin. A lot of rumors started to go viral from this to the point where some people believed China had unbanned Bitcoin completely which is still not the case. While private parties can hold and trade bitcoins in China, regulation prohibits financial firms like banks from doing the same. Nevertheless, such rumors will always fuel a good buying frenzy.
Gemini Bitcoin exchange launch
The Winklevoss twins who sued Facebook’s founder Mark Zuckerberg for apparently stealing their idea, used their “hard earned” millions to start a new and very promising Bitcoin exchange. You can read their official questions and answers Reddit page for more information.
Bitcoin tax-free in Europe
Bitcoin can now legally be treated the same way as real money after a court ruling on Thursday which stated that Bitcoin transactions are exempt from VAT (value-added tax). That alone is enough to raise the price of Bitcoin considerably for obvious reasons. Even the oldschool investors who didn’t care about Bitcoin before are now looking into this tax-free investment.
Less Bitcoins will find their way into the wild now thanks to the corrupt FBI agent.
The Chinese and Europeans are hoarding the coins for their own personal gains bringing the price up even more.
Gemini is providing the first serious and regulated Bitcoin exchange service which will help build trust.
It’s still early to predict where the rally is going to find resistance, but it’s clear that we are only just starting to see Bitcoins true potential.