Top reasons for bitcoin's recent leap to an all-time high of $4,703

top-reasons-for-bitcoin-s-recent-leap-to-an-all-time-high-of-4-703.jpg

The world's most valuable crypto coin, Bitcoin, on Tuesday hit a fresh all-time high of $4,703; a month after it forked to birth Bitcoin Cash. What are reasons for this surge?

Bitcoin's latest rise didn't catch many people by surprise. The coin has tremendous potential. The technology backing it is touted to be the future of the world's financial sector.

The coin itself has appreciated more than 350% in 2017 alone, gaining over  $3,000 in the process. Many analysts are saying the coin would hit $5,000 before the end of the year and some others predicted Bitcoin would be worth hundreds of dollars in a few years.

The coin saw a steady growth since the beginning of August and, after breaking a new high of $4,500 about two weeks ago, refused to climb higher, fluctuating between $4000 to $4,300, until recently. On Tuesday, Bitcoin surged to new levels, hitting a new all-time high of $4,703.42.

At the moment, the coin has fallen below that mark but kept trading above its last all-time high of $4,500 on August 18. So, what are the factors for the recent surge? Here's what analysts are saying:

Institutional interest in Bitcoin is on the rise.

More institutions are tapping into the crypto market, and most of them are buying Bitcoins. On Tuesday, Autonomous Next, a financial research firm, released a report identifying 55 crypto-related hedge funds around the world. 

Brian Kelly, the head of BK Capital Management, corroborated this. He said the rise is due to more money entering the market.

"I think it's just new money coming in", he said according to CNBC. He also observed that the bulk of the gains coincided with the time the U.S. stock market opened on Tuesday morning.  

Asian tension

Another reason for the surge in Bitcoin price, according to analysts, is the increased tension in Asia. North Korea recently fired a ballistic missile over Japan and investors are looking for a safety net in case the local tender of these countries depreciate in value.

"With both Bitcoin and Ether, we're seeing a flight to safety due to the issues in North Korea, similar to when investors previously flocked to gold out of equities during previous wars," Andrew Keys, the head of global business development at ConsenSys, a blockchain software development firm, explained.{loadpostion crytopad}

To buttress this point, the demand for Bitcoin by Japanese and South Korean investors is very strong. 

Overall, investors' confidence in the coin is still high, which is another reason for the surge. This is despite the current infighting among members of the community responsible for the upkeep of the currency and talks of new hard forks down the road.