What Has Gotten Into Bitcoin?

Bitcoin is up 16% this month:

And it is up 86% YTD 2016:

Obviously there is more demand for the leading digital currency than there is supply of it right now.

My guess is this is speculation driven (the more it goes up the more traders want to bet on it) and does not represent any fundamental change in the usage of Bitcoin. The USD transaction chart doesn’t show any massive increase in transaction volume this year.

But whatever the cause, Bitcoin is on a tear going into the end of 2016. Seven years in, there are no signs of this slowing down.