Bitcoin Keeps Soaring, Breaks Beyond $900

Journalist:
Samburaj Das @sambdas
December 23, 2016

Bitcoin has now gained nearly 15% in value over the past three days, surpassing a $14 billion market capitalization for the first time in its history as price registered a high of $913.41 today. As of yesterday, Bitcoin had doubled in value since the beginning of the year and is continuing to soar in value.

One has to look all the way back to January 6th, 2014, to find bitcoin trading beyond the $900 mark, a level it hadn’t achieved since, until today. Back in 2014, bitcoin price crashed the following day after the implosion of the now-defunct Japanese bitcoin exchange Mt.Gox. Three years later, it’s Japan’s neighbor in China that is having a profound impact on the price of the cryptocurrency, as investors continue to flock toward bitcoin.

At the start of day (UTC), the Bitstamp Price Index (BPI) reveals bitcoin’s trading to the dollar at $859.96. It wasn’t long before the third spike in three days followed, as price jumped from $860 at 01:00, blitzing toward a high of $913.41 at 04:00.

At the time of publishing, bitcoin is trading at $912.68.

Predictably, the rapid rise of bitcoin in recent days – part of a steady rally that has continued for the past few months – has mainstream media taking notice as bitcoin takes the limelight.

Market analysts point to a number factors behind the immense gains made by the cryptocurrency in recent times. A Bloomberg report mentions the recent murder of the Russian ambassador in Turkey spurring on buyers to seek alternative assets, like bitcoin. However, it’s still China’s ever-expanding appetite for bitcoin, that’s driving demand. As popular financial blog ZeroHedge reports, there is a recurring theme with China opening “with a panic bid for bitcoin”, almost every day this week. This, in a market that accounts for over 90% of the global bitcoin trade.

Regulatory controls to put the brakes on capital outflows at a time when the yuan is continuing to fall has Chinese investors turning to bitcoin which is immune from any authority or oversight. US president-elect Trump’s unlikely victory has only strengthened China’s demand for bitcoin.

China’s neighbor India is also seeing record bitcoin trading volumes and adoption rates in the country. India’s appetite for the cryptocurrency is despite the premiums stemming from a sky-high demand at a time when the country is still finding its feet following the controversial demonetization run by the government.

At the time of publishing, bitcoin records its highest-ever market cap, scaling at $14.69 billion.

For a live Bitcoin Price chart, click here.

For the most recent bitcoin price analysis piece from CCN analyst Jim Fredrickson, click here.

All time references are in Coordinated Universal Time (UTC).

Image from Shutterstock. Charts from Bitcoin Wisdom and CoinMarketCap.

Last modified (UTC): December 23, 2016 15:41

Samburaj Das @sambdas

Samburaj is the Editor for CCN, among the earliest and foremost publications covering financial and blockchain news. He has authored over 2,000 articles for CCN. Email him samburaj(@)ccn.com or find him barely tweeting @sambdas