Bitcoin price volatility struck again, this time leading to telling gains in value today, scaling a high of $896.23 on the Bitstamp Price Index (BPI).
It has been over 10 days since the People’s Bank of China (PBOC), the country’s central bank, revealed meetings with major Chinese exchanges. The news sent bitcoin prices into a nosedive after months of a sustained rally through the tail-end of 2016.
Bitcoin price has since plateaued above the $800 mark over the few days but a strong trading Tuesday has seen price surge upwards, registering a high near the $900 milestone.
Initial signs of a swell began in the early hours of today (UCT), which saw a lot of $828. At 03:00 price registered at $830.27 before spiking to $843.27 in a 30-minute trading period. The gains were only beginning for the day, as price then scaled beyond the $850 mark at 04:00. At 07:00 AM, price had reached $860 and the biggest surge was yet to come.
Within an hour, price reached $883.51 before registering a high of $896.23 near 08:30 on Tuesday.
Altogether, bitcoin price has gained over 8% in value while clocking in the day’s high. Bitcoin is now trading near the price ceiling after its first collapse in 2017. On Wednesday last week, the second price crash was triggered after the PBOC revealed “on-site checks” of bitcoin exchanges in Shanghai and Beijing.
At the time of publishing, the BPI shows bitcoin trading to the dollar at $883.82.
Today’s surge is the first instance of renewed faith in the cryptocurrency following speculation of PBOC measures or action toward bitcoin exchanges. For their part, the exchanges have already made changes since the PBOC meetings, particularly with margin trading protocols.
The BTC/CNY charts at BTC China shows a high of ¥6192 or $900.
It remains to be seen if the PBOC will further their involvement in the bitcoin ecosystem. In the meantime, the wait-and-see approach taken by traders to see if the central bank enforces any measures against exchanges has seemingly fallen by the wayside for the day.
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All time references are in Coordinated Universal Time (UTC).
Image from Shutterstock. Charts from BitcoinWisdom.
Last modified: June 14, 2020 9:33 AM UTC