On May 9, Cointelegraph reported that Bitcoin price established a new all-time high at $1,733. In just two days, on May 11, Bitcoin price achieved its new global average all-time high at $1,866.
Previously, Cointelegraph revealed that high-profile and institutional investors envision Bitcoin increasing to around $4,000 by the end of 2017. Specifically, Daniel Masters, director at Global Advisors Bitcoin Investment Fund (GABI), stated:
"That example of a successful soft fork in Litecoin has made people start to think that we could get a successful SegWit implementation in Bitcoin and that could increase capacity and move us to the next level. In the eight to 14-month horizon, my forecast would be around $4,000.”
Masters emphasized that Litecoin’s official activation of the Bitcoin Core development team’s Segregated Witness (SegWit) early today is serving as a major driving factor of Bitcoin price. Since miners and investors are carefully observing the effect of SegWit on Litecoin, Masters explained that the demand for Bitcoin is rising exponentially.
Here come the Aussies
Apart from Litecoin’s SegWit activation, the Australian government also revealed a major announcement on May 11. As Cointelegraph reported in an article entitled “Australia Will Recognize Bitcoin as Money and Protect Bitcoin Businesses, No Taxes,” starting July 1, traders and investors of Bitcoin will be exempt from goods and services tax (GST).
The decision of the Australian government to exempt Bitcoin from taxes and offer an even playing ground for Bitcoin business effectively removed double taxation on the digital currency and established a practical ecosystem for Bitcoin businesses.
More importantly, the Australian government reaffirmed in its 2017 to 2018 budget statement that the country will focus on the development of fintech and digital currency markets. The validation and approval of Bitcoin by the Australian government led to a short-term surge in Bitcoin price.
The Australian government stated:
“Innovation will drive productivity growth in Australia. That is why the Government’s $1.1 bln National Innovation and Science Agenda (NISA) is designed to enable Australia to take full advantage of new economic opportunities. The Government is committed to establishing Australia as a leading global financial technology (fintech) hub and is announcing a new package that aims to position our local fintech industry as a world leader.”
Since the Australian government's yearly report was released, Bitcoin price increased from around $1,750 to $1,860. According to various Bitcoin market data providers, Bitcoin price recorded a five percent 24-hour increase, stabilizing at $1,843.
Other factors
Two days ago, when Bitcoin price achieved its previous all-time high, there was a large difference in price of Bitcoin between the US and Japanese markets, the two largest Bitcoin exchange markets in the world. Analysts explained that the Japanese market was leading the short-term price surge of Bitcoin.
On May 11 however, the Bitcoin price listed on the US exchange market rose rapidly, closing in on the Bitcoin price listed by Japanese Bitcoin exchanges. Currently, Bitcoin is trading at $1,890 in Japan, $1,840 in the US and $2,115 in South Korea.