After hovering around the $730-$750 mark through most of November, bitcoin price rose rapidly as the day began, charting significant gains to peak at $774, a high for 2016.
Bitcoin to the dollar on the Bitstamp Price Index (BPI) struck $751.51 at midnight (UTC) before a quick leap that began at 00:45 saw price climb to $762.13 an hour later at 01:45. Value eased above the $760 mark before another short before another spike saw price scale to $771.03 at 05:35, all representing yearly highs.
After continually breaching this year’s high – last set in June 19th in the lead-up to the halving event – the BPI chart soon revealed that there was still plenty left in the tank. As bitcoin’s value struck $764.33 following steady numbers, an 80-minute trading period saw price swell up to $774, striking the new year-high at 09:45.
At the time of publishing, bitcoin is trading at $769.99.
A glance at trading volumes shows a corresponding surge in bitcoin activity in China via major exchange BTCC.
As is often the cause for increased trading activity, China is having a stagnating year economically for over a year. In October, the yuan fell to its lowest levels in six years and the national fiat has continued its plummet, sinking to an eight-year low to the dollar in November. Further, China is struggling to keep a lid on its capital outflows, which totaled a record $44.7 billion in yuan payments in September alone. This sparked a report of China weighing up curbing controls over bitcoin, which led to a drop in the cryptocurrency’s price briefly.
Soon, China will have another policy concern to contend with, as its annual cap on the amount of foreign currency individuals are permitted to convert – $50,000 – resets come January, possibly resulting in further outflows.
As bitcoin shows shades of resiliency over volatility lately, there could be plenty more demand affecting prices come January.
Another significant factor driving demand for bitcoin is the goings-on in China’s neighbor, India, which is still left looking for safe ground during a sweeping demonetization move that saw the government render 86% of the country’s cash obsolete overnight, on a late November night.
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For the most recent bitcoin price analysis piece from CCN analyst Jim Fredrickson, click here.
All time references are in Coordinated Universal Time (UTC).
Images from Shutterstock. Charts from BitcoinWisdom