Why Bitcoin Prices Have Risen More Than 400% This Year

Bitcoin prices have climbed more than 400% this year, providing investors with robust gains and generating strong visibility for the broader cryptocurrency space.

Bitcoin, the world's largest digital currency by market capitalization (market cap), reached to as much as $4,935.05 today, according to CoinDesk's Bitcoin Price Index (BPI). Since Bitcoin started the year at $968.23, this latest high represented a roughly 410% year-to-date (YTD) increase.

The cryptocurrency's market cap has also risen quite a bit this year, surpassing $80 billion at the time of report, additional BPI figures show.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Sustained Strength

The price of Bitcoin has consistently traded at elevated levels in recent months, fluctuating close to $4,000 for a few weeks in August, additional BPI figures show.

This presents a contrast to earlier this year, when the cryptocurrency reached an all-time high in March and then plunged shortly after the SEC announced its rejection a Bitcoin exchange-traded fund proposed by the Winklevoss twins.

That day, Bitcoin's price fell nearly 30% following the decision, according to CoinDesk.