what caused the rise to $1100 last year?

[dukegamsta]

hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.

what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv

i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!

[1714036739]

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[spazzdla]

hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.

what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv

i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!

Panic buying/bots.. you'll see it again.. sooner than later.

[minerpart]

http://moneymorning.com/2013/11/18/why-bitcoin-prices-are-rising-so-quickly-and-will-keep-going/

[nickenburg]

In the other topic, they said it was because of market manipulation.
But I like to think it was because of bitcoin was getting popular because of the bitcoin atm's.
And just because of the positive things it brings to the table instead of fiat money.
Also around that time it was summertime and I think people around that time are free and are searching for investments.
But that's just my opinion.

[cuddaloreappu]

there are multi factors... Chinese investors, cyprus banks failures, willy bot at mt.gox
above all , accept it that's the true potential of bitcoin...

[dukegamsta]

thanks for link minerpart.

@nickenburg - what makes me a little sceptical of this is that rise happend in such a short duration of time and also that it occured so close to the sharp drop in jan 2014. although you make a good point that where was a lot of buzz and media attention around bitcoin at the specific time.

yes it does seem to be a combination of factors. i'm hoping to be a long term investor in bitcoin so of course i hope the price stabilises and increases gradually as more and more people become aware of its paradigm changing ability.

[Melbustus]

Bitcoin is a finite-supply asset with a potential market size as big as the planet. Every 6-18 months since trading began in 2010, there have been these huge boom phases where new groups of people discover bitcoin, read up about it, and realize that's it's near-perfect electronic cash; something that had not been possible until bitcoin. Then other less-diligent people pile on.

Bitcoin has potential applications for ultimately handling huge payment volumes across the internet, as well as replacing some portion of traditional store-of-value assets (gold, silver) since it exhibits all of the same properties without the tangibility bug.

So there are these phases of people realizing the above and buying bitcoin, which then creates a positive feedback loop which eventually starts to suck in get-rich-quick folks and momentum traders who don't really understand the above but just see an asset appreciating in value and they don't want to miss out. So those crazy spikes occur.

The boom/bust cycle is likely to continue happening until one of two things occurs:
1) Bitcoin achieves a large enough market-cap and user-base that everyone who is going to has heard of it, researched it, and understands it to a reasonable degree.
2) Bitcoin fails completely (either an unresolvable technical issue, or governments all over the world coordinate in an extremely aggressive crackdown with far-reaching consequences for western-style freedom and democracy in general).

[bananas]

fake purchases at mtgox promoted all rises not only the mentioned one

[Beliathon]

Excellent post Melbustus. I have nothing to add and couldn't have said it better if my life depended on it.

[dukegamsta]

agreed, excellent post Melbustus.

i almost feel like (or hope) that scenario 2 will cause a massive and long lasting spike in the value of bitcoin. as though the more effort governments backed by corrupt banks puts into squashing bitcoin - it could almost act conversely as a kind of legitimisation on the disruptive power of bitcoin in decentralizing the monopoly of wealth.

it may be a longshot but i think bitcoin is here to stay, at least on at least on the black market and/or as a form of currency in developing nations.

[DolanDuck]

The last rise was mostly caused by the chinese people who discovered the bitcoin and its potential, they leaded the uptrend and the following fall.

[DeboraMeeks]

The introduction of bitcoin to the chinese and Asian countries made it spike and more panic buyers made it increase even more

[beatljuice]

I think there were many many factors. To name just a few. (These are in order of importance based on only my personal opinion)

• Chinese discovered Bitcoin
• Gained the attention of big investors
• Media attention increased
• Actual usage was starting to happen on a significant scale (even if it was for illegal things)
• Many small businesses were adopting
• Software had matured to a place were an average user could do it.
• Mining hardware had recently specialized (You can't do anything but mine Bitcoin or other SHA-256 coins with the ASIC hardware that people spent thousands of dollars on)
• The Willy bot

[johnytelevision]

For me it was 100% CHINA.

[Ron~Popeil]

Rises and falls are never one single factor. Events drive markets. No single bot can drive a bubble like that nor can any single country. 

[Swordsoffreedom]

I would say China was the main factor involved in the rising bitcoin prices during November 2013
The breaker was mtgox and several legal regulations regarding Bitcoin being set
Although the USA senate hearings were part of the bull run at that time.

[roslinpl]

hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.

what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv

i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!

I will tell you what was the most important IMO in this case :

"Demand".

Isn't what is making prices on a markets go up?


but not only demand. People understood how great bitcoin really is. Difficult is goin' up. Hashrates are going up. Imagine mining if price of BTC would be 80% lower ROI.


This is just a sum of few indicators which are operating  a price

ps. I am not any economy expert so mind me if I forgot about something very important in this case.

[redwhitenblue]

hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.

what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv

i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!

The primary reason behind the dramatic rise in the price of BTC was the media attention that was given to silk road. In this attention bitcoin was discussed. The discussion of bitcoin lead to more public awareness which lead to greater public adoption. 

[bitswipe]

Faith and the massive boom in exposure
When it hit $1k it was all over the news....then of course the mtgox crash ruined it all as people were not actually getting coins
If mtgox was legit the price would be through the roof as people would have actually been buying in rather than putting their money into nothing

[Ron~Popeil]

hello, i'm relatively new to the bitcoin scene and wanted to ask a kind of noob question to introduce myself to the forum.

what is the general consensus around the cause of bitcoin reaching a valuation of around $1100 in november 2013 - looking at this chart it seem like a pretty accelerated spike in a short period of time.
http://bitcoincharts.com/charts/bitstampUSD#rg730ztgTzm1g10zm2g25zv

i'm guessing the 50% drop in january was related somehow to the mt.gox fiasco but i wasnt too sure what had caused the price to go up so much in the period of roughly 1 month around november 2013, any insights would be appreciated!

The primary reason behind the dramatic rise in the price of BTC was the media attention that was given to silk road. In this attention bitcoin was discussed. The discussion of bitcoin lead to more public awareness which lead to greater public adoption. 

That was pretty negative attention. I think it is the positive stuff that brings new adapters. Luckily in the cases of Silk Road and the Gox meltdown the average westerner has the attention span of a gnat.