After weeks of calm around the Bitcoin price, the Bitcoin price reached the 257 US dollar mark again for the first time on 17 June.
Market observers paid particular attention to the pace at which the share price rose on 16 June between 13:00 and 15:00 UTC. Although such price fluctuations are not uncommon in the Bitcoin industry, the recent uptrend has seen speculation of a larger market movement.
One of the best-known theories for the sudden rise in Bitcoin’s price is timing with the possible imminent Grexit should Greece fail to meet its commitments.
This crypto trader behaviour in relation to international crises is not a new phenomenon in the Bitcoin industry:
Already during the Cyprus crisis in early 2013, Bitcoin and other crypto trader currencies were used as protection against price fluctuations of the Fiat currencies and the crypto trader exchange rate recorded an extreme rise.
Joshua Scigala, CEO of Bitcoin/Gold exchange platform Vaultoro, agrees that there may be a connection between the current price development and the possible Grexit, if only psychologically:
“It’s a typical meeting point. During the Cyprus crisis, not all Cypriot citizens exchanged their money directly for Bitcoin. It was more like many said ‘Hey look, Cyprus is in trouble and we are seeing a rise in Bitcoin and other assets’.
Nevertheless, the connection between the Bitcoin price rise and the possible Grexit was very quickly picked up by the press and Reuters also published an article on the current discussion.
UK Digital Currency Association Chairman Paul Gordon believes, however, that it was simply a coincidence that the Bitcoin price skyrocketed at a time when speculations about a possible Grexit were growing louder. “There is simply too little evidence. Of course, it’s nice to be able to say that the price per bitcoin has risen due to the Greek crisis, but it could just as well have gone down.”
Nevertheless, the question is whether the months long downward trend since the Bitcoin high in 2013, with the recent price rise has found its turnaround.
It is probably still too early to say whether the recent price movement indicates the awakening of a giant, or whether it was just a loud snoring of the giant in deep sleep.