As has been the trend in recent days stretching into weeks, Bitcoin is booming, making significant gains as demand surges, driven largely by Asian investors.
The Bitstamp Price Index (BPI) stuck a high of $749.98, continuing its ascend from yesterday’s high of $740. Bitcoin price struck yesterday’s milestone following a frenzied trading period where price rose 4% from $714.88 to $739.01 in a 30-minute period.
Continuing its appetite for gains, bitcoin to the dollar was trading at $739.49 at midnight (UTC). In a two-hour trading period between 02:20 and 04:20, bitcoin price rose to $745.68 before settling to a steady chart. Today’s high of $749.48 occurred just before noon.
At the time of publishing, the BPI shows bitcoin trading at $746.76.
There have been major political and monetary events among the world’s biggest economies in recent weeks, providing some answers for bitcoin’s price surge as demand for the cryptocurrency goes up a gear.
India, home to the world’s youngest population, the second largest population altogether and a rapidly growing economy is left reeling after an unprecedented cash freeze wherein money bills that represented 86.4% of the entire Indian currency in circulation was rendered obsolete, overnight. As fiat cash gets its strings pulled by central authorities, bitcoin has gained plenty of interest among Indian citizens, inevitably leading to bitcoin buying.
The influence of Chinese demand for bitcoin can hardly be overstated, as the biggest trading market for the cryptocurrency, globally. As reported previously, the Chinese yuan is falling and has been continually for over a year. Against the dollar, the yuan dropped to a new eight-year-low, with China’s central bank dropping the reference rate for the ninth consecutive trading day.
Forecasts aren’t encouraging either for Chinese investors, who are increasingly turning to bitcoin as a store of value. The unlikely victory of Donald Trump, now President-elect of the United States, is also casting gloom for Chinese market. The Republican nominee, while campaigning for the presidency, continually accused China of deliberately devaluating its currency to allegedly gain a competitive edge in the global market with its exports.
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All time references are in Coordinated Universal Time (UTC).
Images from Shutterstock. Charts from BitcoinWisdom.
Last modified: March 4, 2021 4:52 PM