The total value of Bitcoin transactions is expected to exceed $92 billion this year, up from less than $27 billion in 2015, according to a new study from Juniper Research. The report found that transaction volumes continued to be concentrated overwhelmingly on the exchanges, with Bitcoin now trading at values almost 50 per cent higher than at the beginning of the year.

The rise in values, according to Juniper, could be attributed to three key factors:

Uncertainty over Brexit – the research argued that Bitcoin’s value is somewhat dependent upon economic uncertainty and political instability as investors seek safe havens for their assets.

Continued weakness of the Chinese economy – the vast majority of Bitcoin trading occurs on Chinese exchanges, while the continued weakness of the economy has seen investors using bitcoin as a haven against expectations of a further drop in the value of the yuan.

Reduction in money supply – the imminent ‘halvening’, due to take place on 9 July, whereby the amount of Bitcoin being introduced by mining in a set time period will halve is also pushing the price upwards.

Research author Windsor Holden also expected the prospects of a Trump presidency in the US to cause further spikes in trading and Bitcoin value later this year. “If Donald Trump becomes president of the US, there is the very real prospect of turmoil on world markets – the Economist Intelligence Unit ranks his presidency within the top ten global risks,” he said. “However, Bitcoin trading would thrive in such an environment, at least until the impact on major fiat currencies becomes clear.”

The research added that Bitcoin adoption in the retail space was likely to remain limited to a niche audience, with only a small number of websites seeking to offer it as a payment option.

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