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Bitcoin’s Strong Year Continues in Push to $800

Last Updated March 4, 2021 4:53 PM
Samburaj Das
Last Updated March 4, 2021 4:53 PM

Bitcoin price struck a new yearly high of $794.39 on the Bitstamp Price Index (BPI) today as the cryptocurrency continued its collective surge in 2016.

Having started the year at $432 in trading, the price of bitcoin to the USD has gained a remarkable 80% so far. With less than a fortnight to go, 2016 has proven a strong year for the cryptocurrency.

At the crack of Monday (UTC), price was already trading at $788.46. Shortly after, a flurry of activity saw price jump to $791.39 in a 20-minute period. Subsequently, steady trading ensued in the early hours of the day before bitcoin charted a new 2016-high of $794.39 near 06:45.

At the time of publishing, bitcoin price is trading at $790.05.

A bullish stance is helping fuel the price, as investors continue to speculate on the cryptocurrency as an asset and store of value. China, which accounts for a significant majority of the world’s bitcoin trading, saw a record 174.7 million bitcoins ($134 billion USD in trading volume) traded in November, figures from Bitcoinity.org reveal. That figure is over a 50% increase from October’s trade volume, as the yuan continues to weaken against the dollar following US president-elect Trump’s unlikely victory in November.

As a result, Chinese investors are buying bitcoins, ducking away from regulations and limits against buying dollars. To curb currency outflows, a Chinese national can only up to $50,000 of foreign currencies per year.

Trading volumes of bitcoin are also seeing an increase from other parts of the world including Europe. Trump’s victory and the immediate aftermath also resulted in a spike of bitcoin trading among Americans.

As China grapples with its falling yuan, the uncertainty brought on by China’s public efforts to manipulate its currency is having a telling effect amongst other countries to try and do so with their own fiat currency. Moreover, recent cash crunches spurred on by government action as in the case of India and economic turmoil in Venezuela, has also led to a surge in bitcoin buying.

In its current trajectory, $800 isn’t likely to surprise bitcoiners or traders. A rally in the final days of the year, however, could see excitement build toward the $1,000 figure.

For a live Bitcoin Price chart, click here.

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. Chart from Bitcoin Wisdom.