Here’s the reason behind its soaring value, Credit Agricole says

Bitcoin’s meteoric cost rise has stunned critics along with also enthusiasts alike, leaving investors scrambling to understand the fundamental reason for the digital currency’s runaway rally.

Valentin Marinov, head of G-10 FX research at Credit Agricole CIB, told CNBC on Monday which he was hopeful he at This kind of point understood the reason behind bitcoin’s soaring value.

He predicted further gains for the cryptocurrency before the end of the year.

Bitcoin was changing hands about 10.7 percent higher Monday morning at above $16,642.45, according to CoinDesk’s Bitcoin cost Index. The index tracks prices through digital currency exchanges Bitstamp, Coinbase, itBit along with also Bitfinex.

When asked to explain the driving force behind bitcoin’s unprecedented rally, Marinov said: “the item will be the inherent imbalance between demand along with also supply. Supply will be inherently fixed; the item’s very much like gold if you wish? At the same time… demand will be based on hopes which its value will continue to grow.”

Marinov also pointed to an unwavering expect among investors which the digital currency’s value appears to be “unlimited”.

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