The recent price rally exhibited by Bitcoin took the mainstream media by surprise. While the cryptocurrency community was waiting for it, others didn’t really expect it to happen so soon. Bitcoin, like any other commodity, is driven by demand and supply. In the past few weeks, the demand for Bitcoin has been high due to various economic and political factors across the world. Increased demand from investors looking for alternate financial assets, has driven its price above $900.
Two months ago, the price of one bitcoin was around $680. The constantly changing market situation following various implemented and expected changes in the monetary systems of India, Venezuela, Pakistan and Australia, weakening EU, Brazilian and Chinese economies, and the results of US presidential elections have led the price to cross $910 in the recent days.
Increasing price has driven Bitcoin’s market capitalization to an all-time high, crossing the $14 billion mark. It was widely reported by leading international and national media outlets including Reuters, Channel News Asia, Business Insider, Forbes, and others.
Reuters, in its reporting on increasing bitcoin market cap, attributed the development to failing yuan —
“That compared with levels around $435 at the start of the year, with many experts linking bitcoin’s rise with the steady depreciation of the Chinese yuan, which has slid almost 7 percent this year.”
The English news outlet, BBC has included global political uncertainty, increasing cryptocurrency demand in India and the performance of yuan as influencing factors,
“global political uncertainty and Indian moves to control paper currency were also driving people to buy Bitcoins.”
The Brexit referendum and Donald Trump’s election as the next president of the United States were also considered by Business Insider as the reasons behind rising Bitcoin prices
“Bitcoin has behaved like a risk asset this year, spiking around the Brexit referendum in June and Trump’s election in November.”
However, the Indian press has been unforgiving towards Bitcoin. After the demand for digital currency increased following demonetization, few news outlets have gone ahead to paint a target on Bitcoin. The Indian Express mentions,
“After demonetization, govt must prepare to fight challenge of digital black economy”
While the coverage of Bitcoin by these outlets are questionable in few cases, they should ensure that the facts are checked before reporting as they may end up hampering innovation and adoption of digital currencies while in pursuit of eye catchy headlines.
On the other hand, the recent coverage of Bitcoin and its price gains by all leading news outlets signifies the increasing popularity of digital currency. Mainstream media has started following Bitcoin market like any other stock market. We can expect more mixed reporting from various outlets as the digital currency adoption continues to grow across the world.
Ref: Reuters | BBC | Business Insider | Indian Express | Image: NewsBTC