The last week of 2016 has seen bitcoin push the pedal in its continuing rally as the cryptocurrency rises toward the $1,000 milestone.
Bitcoin price has gained over 34% in the past month alone, streaking from $727.18 on the Bitstamp Price Index (BPI) on November 29, to today’s and the newest annual high of $980.74, at the time of publishing.
Having steadily risen through most of December’s trading period, the price of bitcoin to the dollar shifted gears to surge from $791.41 on December 20 to $870.78 on December 22. While the handful of days remaining in 2016 wind down, bitcoin price broke through the $900 marker the following day, beginning the final 7-day period in 2016. While price corrected toward the $860 mark on Christmas day, a strong pullback saw a rebound toward $900 the following day.
On December 27, price scaled to a new high of $935.89 before crossing the $950 mark in the early hours of trading yesterday. The final hour of the day had price strike $975.00 before peaking at a new 2016 high of $980.74 at 01:40 (UTC), Thursday, December 29.
At the time of publishing, bitcoin price is trading at $970.
A number of factors have been attributed the cryptocurrency’s strong surge. The ongoing cash crisis in India and the spate of hyperinflation in Venezuela have contributed to swelling demand for bitcoin as a safe asset in times of cash crunches and economic uncertainty. The recent murder of the Russian ambassador in Turkey has spurred on European buyers to seek and invest in alternative assets like bitcoin, according to one Bloomberg report.
As bitcoin pushes on toward 3-year-highs, the cryptocurrency has already struck a new all-time high against the British sterling. As the Telegraph reports, “one bitcoin was worth £782.49 on Wednesday, above the £694.65 it reached on November 29 2013.”
The most plausible theory for the increasing demand and subsequent rise in bitcoin’s value is China’s ever-expanding appetite for the cryptocurrency in the face of a devaluing yuan. US president-elect Trump’s unexpected successful run to the White House has further dampened confidence in the yuan among Chinese investors who are turning to bitcoin as a store of value.
The result of the shortening supply and increasing demand for the cryptocurrency has resulted in bitcoin’s market cap scaling $14 billion on December 22 before hitting $15 billion yesterday. At the time of publishing, bitcoin’s market cap has reached an all-time high of $15.62 billion.
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For the most recent bitcoin price analysis piece from CCN.com 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: June 14, 2020 9:33 AM UTC