The price of the digital currency has continued to rise after hitting its lowest levels in years, with the digital coin now trading for about $1,100 on exchanges.
The rise in the value of the currency, which was trading at $1.30 in late January, has been driven by the increasing demand for Bitcoin among traders in Europe, according to CoinMarketCap.com.
That demand is expected to continue, with Bitcoin trading for around $1 million in mid-December.
“People are getting more excited about it, they’re trading it for less money, they don’t have to worry about the price going down or not going up,” said Matthew Garza, a researcher at CoinMarketWatch, referring to Bitcoin’s perceived volatility.
Bitcoin has been in a downward spiral over the past several months.
In November, the cryptocurrency lost more than $3 billion in value, its largest single loss since 2013.
The cryptocurrency’s value fell by nearly half last week.
Since the beginning of the year, Bitcoin has lost nearly half of its value, according the CoinMarketcap data.
“It’s very hard to predict, and there’s no one with any insight into what’s going on,” Garza said.
“But what I do know is that Bitcoin is a currency.
It’s not going to last forever.”
Bitcoin’s volatility is often blamed on an influx of Chinese miners who use the digital coins technology to mine for blocks of data that are added to the blockchain, the online ledger that tracks transactions and data in the world’s digital economy.
Garza believes Bitcoin is likely to be subject to similar price fluctuations in the future.
“The more miners, the more Bitcoin is going to become worthless,” Garado said.
“But it will always be a currency.”