While 2016 is running out of road, the prolonged bitcoin rally that has lasted through most of Q4 2016 continues to scorch a hot trail as bitcoin price rises beyond $915 to set a new high for the year.
Today, bitcoin price struck a high of $928 on the Bitstamp Price Index (BPI). The last time price traded at these levels was on January 7, 2014. That fateful day – in the immediate aftermath of the implosion of the now-defunct bitcoin exchange Mt Gox – saw price at $919.24 at midnight (UTC) before crashing down to $785 by day’s end.
This month, the cryptocurrency is up 25% in value since the beginning of December. Bitcoin began 2016 trading at $428 on the BPI. Today’s high of $928 means price has now gained over 114%, easily pinning the cryptocurrency among the year’s best performing assets.
At the time of publishing, bitcoin is trading at $928.26 and is continuing to rise.
Analysts point to a number of factors behind Bitcoin’s bullish run. Chief among them, is China’s undoubted influence in bitcoin trading. Home to over two-thirds of the world’s bitcoin mining power and over 90 % of the cryptocurrency’s trades, bitcoin is seen as a natural hedge against the devaluation of the yuan. Confidence behind the fiat currency is dwindling, driving Chinese traders to place their bets and investments in bitcoin.
As demand increases and supply shortens bitcoin price has made remarkable gains since early October this year when the yuan hit its lowest level in six years. That psychological low has spurred on bitcoin in a continuing rally that continues to last. The unexpected victory of US president-elect Trump has further contributed to the lack of confidence in the yuan.
Along the way, China’s neighbor India has also helped drive bitcoin demand and price, due to the much-publicized and controversial demonetization drive enforced by its government in November.
As quoted by the Australian Financial Review, Sam Lee, CEO of Australian miner Bitcoin Group, stated:
We are seeing a wave of Indian buyers looking to circumnavigate the recent push to remove large slabs of cash from circulation and who otherwise have trouble moving fiat currency.
Bitcoin buying premiums reached nearly 35% in India last month while trading and adoption of the cryptocurrency has never been higher. Rumors of a gold imports ban has also spurred on interest in the cryptocurrency.
Bitcoin’s bullish run means the market cap for the cryptocurrency is continually pushing toward the $15 billion mark. At the time of publishing, bitcoin’s market cap stands at $14.78 billion.
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For the most recent bitcoin price analysis piece from CCN.com analyst Jim Fredrickson, click here. Today’s analysis will be published shortly.
All time references are in Coordinated Universal Time (UTC).
Image from Shutterstock. Charts from Bitcoin Wisdom and CoinMarketCap.