Bitcoin rides Japanese demand to record $1,800, just two days after hit $1,700

[KeyGenKing]

The price of bitcoin hit a record high Thursday, crossing above $1800 just two days after rising above $1700 for the first time.

Bitcoin jumped more than 5 percent at one point, reaching a price as high as $1,839.23, according to CoinDesk. The digital currency is now up roughly 36 percent so far this month.

BKCM CEO Brian Kelly says he believes the rally is driven by Japan legalizing bitcoin and institutional investors entering the digital currency universe.

On April 1, Japan passed a law recognizing bitcoin as a legal method of payment and put in place capital requirements, cybersecurity regulations, employee training, and annual audits. Furthermore, the Accounting Standards Board of Japan has also started developing standards for digital currencies such as bitcoin, according to a note from Kelly.

"There's a tremendous amount of bitcoin influx in Japan," he said. "It's one of the most popular currencies in Japan."

The hedge fund manager, who runs a digital assets portfolio, says there's been a massive adoption of Bitcoin in Japan and even speculation that some major Japanese banks will start trading bitcoin as a currency like the yen, dollar and euro.

"These developments have made Japan the dominate player in the bitcoin trading market. According to data compiled by CryptoCompare, the Japanese Yen is the most popular fiat currency used to buy bitcoin," Kelly said in a note. "Over 50% of the daily fiat to
bitcoin trading volume is in Japanese Yen."

Minneapolis Federal Reserve Bank President Neel Kashkari spoke positively about the potential for blockchain technology this week, saying, "I would say I think conventional wisdom now is that blockchain and the underlying technology is probably more interesting and has more potential than maybe bitcoin does by itself."

But Kelly disagrees, calling bitcoin the "gateway digital currency" for other cryptocurrencies in the blockchain-technology supported space.

The rally this month has also been helped by the SEC saying it would reconsider a bitcoin ETF in the U.S.



Source,
http://www.cnbc.com/2017/05/11/bitcoin-rides-japanese-demand-to-record-1800.html

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[talkbitcoin]

The digital currency is now up roughly 36 percent so far this month.

according to price obtained from https://bitcoinwisdom.com/ it has gone up ~48% by the time i am writing this.

BKCM CEO Brian Kelly says he believes the rally is driven by Japan legalizing bitcoin and institutional investors entering the digital currency universe.

i believe that is only partly true.
bitcoin is known to rise at the sight of good news. which means those who are already in the market (old traders) start buying bitcoin up as they know the fresh money (fresh blood) is coming in which is the other part of the reason for rise.

"There's a tremendous amount of bitcoin influx in Japan," he said. "It's one of the most popular currencies in Japan."

this is indeed great.

The hedge fund manager, who runs a digital assets portfolio, says there's been a massive adoption of Bitcoin in Japan and even speculation that some major Japanese banks will start trading bitcoin as a currency like the yen, dollar and euro.

apart from that, there is a new Bank in Japan which is about to start working with bitcoin only and it will be an interest paying bank.

[davis196]

I`m 100% sure that a price correction is coming.
Anyway it`s good that Japan adopts bitcoin and becomes more cryptocurrency-friendly.
Waiting for South Corea to follow Japan.

[KeyGenKing]

I`m 100% sure that a price correction is coming.
Anyway it`s good that Japan adopts bitcoin and becomes more cryptocurrency-friendly.
Waiting for South Corea to follow Japan.

I am thinking the same about a sudden price drop.
Could be in a range of 20/30%. In just a few days.
A lot of good news is setting the price only higher and higher.
Looks logic a price job in that range.

[bitcoin_user]

I've got a question: Why?
Why has Japan decided to legalize bitcoin now? I've heard about "it's is good for innovation", "the will to lead the bitcoin economy" etc... but this seems to me quite peculiar for a government not very renowned for its audacious moves (the quantitative easing as everybody, the explosion of the debt etc...).
Or maybe they are in so dire straits, the Yen is about to flank in about a moment, they know they will default soon etc... Something seems fishy here.

[bitcoinisbest]

I`m 100% sure that a price correction is coming.
Anyway it`s good that Japan adopts bitcoin and becomes more cryptocurrency-friendly.
Waiting for South Corea to follow Japan.

Well the price rise is indeed occurred due to Japan making it a legal there. Lets us see how long this run can continue or will it make a dip in the price in coming time. Also mass adoption in Japan will make the price rise itself.

[BitcoinHodler]

I've got a question: Why?
Why has Japan decided to legalize bitcoin now? I've heard about "it's is good for innovation", "the will to lead the bitcoin economy" etc... but this seems to me quite peculiar for a government not very renowned for its audacious moves (the quantitative easing as everybody, the explosion of the debt etc...).
Or maybe they are in so dire straits, the Yen is about to flank in about a moment, they know they will default soon etc... Something seems fishy here.

some people find something fishy in everything so i don't blame you
but as for why now, it has been a very long discussion in Japan and they prolonged it long enough. there have been a lot of demand for bitcoin in that country and as a result there have been a lot of requests to legalize it. and Japan have always been kind of a frontier to any new technology in the world.

you can see the demand by just looking at how many businesses suddenly started in Japan using bitcoin.