Bitcoin price is nearing the $1000 mark for the second time this year, just over a month after the cryptocurrency scaled the milestone at the beginning of 2017.
It’s still early days in the year and bitcoin has already seen a dramatic 2017.
Trading beyond the barrier in early January, the cryptocurrency’s market capital swelled beyond $17.5 billion. In China, bitcoin prices reached all-time highs in the first week of 2017. Price also scaled beyond $1100 on January 4, nearing an all-time high in the Bitstamp Price Index (BPI) as bitcoin reached gold parity. The following day, price crashed steeply following a crackdown led by China’s central bank. Altogether, bitcoin lost over a third in value after falling further to a low of $751 in January, having scaled a high of $1139 in the month.
Now, despite a significant drop-off in bitcoin trading volumes in major market China – following the introduction of trading fees – bitcoin has hit the bull switch again as it charts its way toward the $1000 figure.
At the time of publishing, bitcoin is trading to the dollar at $995.48, close to the day’s high of $995.62 on the BPI.
Despite feeling its impact initially, Bitcoin shrugged aside the People Bank of China’s involvement into the Chinese trading market, where bitcoin is – once again – trading beyond the $1000 mark. According to Bobby Lee, CEO of major Chinese exchange BTCC, the reason behind bitcoin’s rising prices is due increased interest and media coverage of bitcoin, contributing to a “hype cycle”, rather than any instance of capital flight from China.
In statements to Forbes, he stated:
People are learning about Bitcoin from the media and having confidence in the technology, which then leads to more people buying, the price continuing to rise and more media attention. The hype cycle continues.
Another possible factor behind bitcoin’s latest bullish run are speculated policies and enforced executive orders of new American president Donald Trump. Talk of imposing tax tariffs on Chinese imports, verbal sparring between Trump’s camp and German chancellor Angela Merkel, a controversial ban denying immigrants and refugees into the United States have all lead to storm clouds gathering and adding to global political and financial uncertainties. These developments, observers believe, has led to bitcoin’s price making gains in the initial days of Trump’s presidency.
Today’s gain has added to a notable bullish run since Donald Trump was inaugurated as President on January 20. Bitcoin price has gained over 10% since Trump took office.
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All time references are in Coordinated Universal Time (UTC).
Image from Shutterstock. Charts from BitcoinWisdom.
Last modified: May 21, 2020 10:03 AM UTC