Towards the end of 2016 the digital currency saw the price of one Bitcoin reach $875 on the European Bitstamp exchange, now it is valued at $1,012.74, at time of writing.
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This rally which translates to a 125% surge in value also placed Bitcoin as the best performing currency for traders in 2016.
The yuan’s rise is also pressuring the United States dollar, which fell against other major currencies. Another factor may be traders taking profits since $1,150 is in the range of bitcoin’s previous all-time highs. Then you can exchange with TTN or comment underneath for more information.
Bitcoin’s price reached $1,140.64 on Wednesday, breaking the $1,137 price it hit in November 2013. Chinese investment in the U.S. “In contrast, just 53,000 bitcoins were bought in USA dollars”. In this way, bitcoin is like a pyramid scheme since it only gains value as more converts push up the price and always promises bigger returns just over the horizon.
On that note, some analysts are also saying that there has been a misleading trend of speculation with regards to the rise in the value of the digital currency.
Some argue that this time around Bitcoin’s price is driven by India, which has currency woes with the withdrawal from circulation of the rupee banknotes with the highest denominations, and similar banknote problems in the inflation-ridden Venezuela.
Bitcoin started out just a few years back, it wasn’t a for sure thing with how it would work out in the industry, but it has been a success from the get go. Obviously, this is a huge price increase, so bitcoin investors have to really sit down and ask themselves whether prices have peaked, or if they could climb even higher.
“Bitcoin is reacting as a safe haven”, he said.
Did the election of Donald Trump send a jolt through the bitcoin market? The second arrow brings Bitcoin down back below $800 USA per coin due to the blue trendline (which is based upon the MACD peaks). Meanwhile, the Stochastics is already at 100 again.
“But bitcoins are still very marginal”. For now, the trajectory remains upward.
In response, Chinese officials are now considering strengthening policies to restrict the movement of the cryptocurrency internationally, as investors have been buying Bitcoins on local exchanges and subsequently selling them offshore, bypassing rules on foreign exchange and cross-border fund flows.
The market is far more mature than it was in 2013, with no central exchange maintaining nearly all of the volume like Mt. Gox. Money left China and ran right into the arms of the crypto-currency. Adding fuel to the bullish fire was the announcement by Ford Motor Company (NYSE: F) that the firm is cancelling its planned $1.6 billion plant in Mexico in lieu of a $700 million investment into a factory in MI. Others see China once more as the main driver of Bitcoin price.
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Image from Shutterstock. Charts from BitcoinWisdom. This was due to China’s new interest as money rushed out of the country thanks to the weakening of the yuan.
