Bitcoin rose by some $600 in the past 24 hours, from a recent low of $5,360 to a recent high of $5,960 at the time of writing.
With its trading volumes remaining at around $2 billion while the oldest digital currency keeps a market share of around 57%, the highest level for months.
A sudden jump of around $200 coincided with a statement by Mario Draghi, ECB’s president, that EU is to continue money printing at a rate of $35 billion a month.
That was somewhat expected, but indications were quantitative easing was to continue for only another 9 months after January. However, they have seemingly decided to keep it open ended. BBC reports:
“The decision to cut quantitative easing measures was not unanimous among ECB policymakers, and a large majority favoured keeping monetary stimulus open-ended.”
ECB’s interest rates are currently at 0%, while deposits are in the negative at 0.4%, even while Germany and much of northern Europe is booming. Potentially leading to considerable inflation down the line.
Another reason for bitcoin’s price rise might be the expected November fork, which is taking everyone’s attention as the date nears for bitcoin to make its final decision on the scalability matter.
There is some uncertainty as to how it will be resolved, but both Gemini and Coinbase have stated they will follow the longest chain. Thus there may be at least some clarity on the labeling matter.
That means the level of miners support will be important. Currently it is at around 85%, very much an overwhelming majority, which would probably mean the minority chain would be unable to operate.
If that does turn out to be the case, it is unclear how Blockstream will react. One option would be to upgrade Bitcoin Core in consensus with the rest of the network, or they could make protocol level modifications to the minority chain and continue as a minority coin.
In which case, there may be some so-called “free money” as the market decides between the two different currencies. But there is still some time to go for events to unfold and the picture to become more clear.