Earlier we noted that Bitcoins are up nearly 40 percent since Monday.
The chart below shows the surge.
We reached out to ConvergEx Group Chief Market Strategist Nick Colas, who wrote about the Bitcoin market recently in a note to clients, for his thoughts on why the virtual currency has gone so wild this week.
Colas says it looks like Bitcoins may finally be about to go mainstream:
My thought was that [the move this week] was a result of the CoinLab announcement of becoming Mt Gox’s partner in the US and Canada. Along with that comes the involvement of Silicon Valley Bank.
That’s a big thing potentially, because now we’re talking about a real US bank with all the AML and KYC regulations that will make Bitcoin much more relevant for legitimate transactions.
(AML refers to anti-money laundering and KYC refers to “know-your-customer.”)
“That, combined with the currency’s limited growth (by design),” Colas tells us, “is the recipe for this kind of ramp.”
The Mt. Gox-CoinLab partnership was announced Thursday and the full press release is included below.