Bitcoin at the highest this year due to positive news surrounding it, analysts study

In the past few weeks the prices of Bitcoin has been drastically and consistently rising again, and according to analysts one of the major reasons for the surge is the positive news that surrounds the cryptocurrency.

In the beginning of 2015, bitcoin fell below $200, but in the past few weeks it is fast approaching the $500 mark, with most of the gains happening in the last few days, according to the International Business Times. Two years ago, in November 2013, the encryptocurrency also reached the $500 mark, and then it went pass the $1,000 in December. What happened next was an unbelievably big economic bubble burst. Analysts are now suggesting that another bubble is forming, but it will be bigger than 2013.

According to experts, the surge could be triggered by the positive news surrounding the cryptocurrency, the tightening of capital controls in China, and the increasing interest and acceptance from influential financial companies on the currency's blockchain technology.

Financial giants like JPMorgan Chase and Nasdaq have already taken interest in Bitcoin. The New York Times reported that Genesis Global Trading chief executive Brendan M. O'Connor said he saw a spike from big institutional investors every time bitcoin gets big funding. "That is nudging people to get off the sidelines and invest in the asset class," he said.

Bloomberg Business reported that according to Wedbuch Securities analyst Gil Luria, Bitcoin is finally catching on with the financial industry. Banks and financial institutions finally see that bitcoin and blockchain technology will become keys to providing financial services in the future, said Luria.

Besides the influential institutions jumping into the Bitcoin bandwagon, the situation in China could also be another big factor for the unprecedented Bitcoin surge. As an economic downturn threatens the world's second largest economy, investors are looking for new creative ways to funnel their money out of the country, and Bitcoin could be one of their best options.