Bitcoin’s price is rising again, and a big part of the gains may be because of the rising interest in the cryptocurrency, according to a recent research report from Digital Currency Group.
“In recent weeks, the market capitalization of Bitcoin (BTC) has increased by over 2,000%,” the firm said in its research report.
“The number of Bitcoin miners in the US has more than tripled over the last year, with more than 500,000 hashing power now running in the country.”
“Over 80% of the Bitcoin mining hash power has been located in the USA,” the report added.
“At the moment, the bitcoin price is about $13,600 per BTC.”
Bitcoin is the world’s second most widely used currency after the dollar, after the Japanese yen.
Bitcoin is an online payment system that is often used to buy and sell goods and services.
It has been gaining popularity in the developing world because of its anonymity, and its high speed and low transaction fees.
The rise of Bitcoin has coincided with a surge in interest in cryptocurrencies in the West.
“Over the last two weeks, bitcoin mining has experienced a significant uptick in activity, and in the past few days, the total number of active bitcoin mining rigs in the world has increased to over 3,000,” the Digital Currency report said.
“This indicates that miners in China are becoming increasingly interested in the bitcoin market, and have begun mining at a higher rate than in the last few months.”
The Digital Currency group also said it had found “significant price volatility in Bitcoin over the past year, and this volatility may be driving investors towards the altcoin.”
“In early April 2017, bitcoin was trading for over $2,000, which has since declined to around $600, and has recently shown some signs of stabilisation, as it is currently trading for around $500,” the group said.
The cryptocurrency has had a rocky start to 2017.
On Friday, the price of Bitcoin plummeted to around a fifth of its $2.9 billion peak in January.