The bitcoin price has jumped since our last price piece and once again, Asia is the continent to “blame.” After a massive recoil down to $704 (the price had hit $740 just a few days prior) our favourite digital currency is back on its heels and striking the $727 chord.
One source described the action in detail:
“The bitcoin price made significant gains in a trading hour today as price spiked up to nearly $740 on the Bitstamp Price Index (BPI), pushing towards the higher ceilings of the cryptocurrency in 2016. The surge began at 12:25 UTC when bitcoin was trading at $714.88. Merely 15 minutes later, the price jumped to $721.36 before a frenetic surge saw price scale up to $739.01 at 12:55, representing a four percent swell in a half-hour period. At the time, Bitcoin was trading at $730.46.”
Two primary reasons have emerged for bitcoin’s sudden burst of fame. The first is the ever-weakening yuan. This may seem like old news, but as long as this continues, bitcoin is likely to earn support along the way. In a previous article, we discussed that the Chinese yuan had hit a six-year-low in its recent journey down south, but things have struck a new nerve to bring the yuan down to an eight-year-low. The Chinese yuan is now hovering around the same level as during the height of the Great Recession.
Price Surge: China, Trump, India, or All of the Above?
Some sources claim that this likely due in part to Trump’s rise to the White House. The businessman and former reality star has often claimed that China regularly devalues the yuan as a means of facilitating its exports, and analysts are expecting things to get worse once Trump takes office.
But there’s another side to bitcoin’s rise that must be explored. As the second most populous country in the world, India certainly bears a healthy portion of influence in the digital industry, particularly as its user base starts to grow. Recent sudden moves to ban high-denomination cash may also be contributing. Digital currency exchanges such as Zebpay claim to be adding upwards of 50,000 new users every month as bitcoin continues to garner a stronger reputation within the region. Co-founder of Zebpay Sandeep Geonka explained:
“We hail the unprecedented move by PM Modi’s vision for a cashless and corruption-free India. More people have started looking at bitcoins and interest has surged. We are working hard so that bitcoins and this technology can help fulfil the government’s dream.”
The result is that bitcoin is moving into mainstream territory, and likely to spur even more price hikes in the coming days.
Will bitcoin rise to $800 by the end of the year? Post your comments below.
Images via Bitcoin Aisle, Pixabay