Arguably, one thing moves the price of bitcoin more than anything else: the price of bitcoin itself. Any time bitcoin’s exchange rate hits these new milestone highs, (mainstream) media takes notice, in turn attracting more attention to bitcoin and drawing in more new users. This, of course, pushes up the price even further.
And the past year has seen a lot of milestones.
While it wasn’t the first time ever that bitcoin traded over $1,000 — it had already happened briefly in late 2013 — the new $1,000 milestone was reached on the first days of 2017. The fact that this happened almost precisely at the same time the new year took off certainly helped write catchy headlines and juicy stories: Would 2017 be the year of Bitcoin?
Then, in March, a completely new milestone was reached: BTC for the first time hit parity with an ounce of gold. This is, of course, a rather arbitrary milestone: an ounce of gold is not 1/21,000,000 of all gold, while a bitcoin is 1/21,000,000 of all bitcoin…