Bitcoin Update: Highest Since April.

Bitcoin, the virtual currency touted as an alternative to the dollar, was rattled by the recent closure of it’s most popular marketplace, Silk Road. However, the fallout from said closure has been rapidly overcome as bitcoin climbed to it’s highest value seen since April. Of significant note is the lessened volatility exhibited by bitcoin relative to value, currently near 4%. The last time bitcoin reached these heights, volatility ranged anywhere from 13% to 22%.

price and volatility2

Also of note: the resurgent interest the public seems to have had in bitcoin. With the closure of Silk Road all over the news, it would appear that a great deal of public interest in bitcoin has been rekindled, with Google search data reflecting this.

btc vs search

I suspect the closure of Silk Road may have ultimately been a benefit to bitcoin. I think this will lead to more websites appearing to fill the void left by Silk Road, this time taking more measures to avoid the wrath of the US government. I especially foresee more bitcoin-centered websites opening overseas.  I also think the recent budget crisis may have pushed new investors into the market, looking to diversify their assets further out of dollar holdings.

The future of bitcoin will be very interesting to watch.

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