Bitcoin price has been making headlines and is under the spotlight again after scaling to two-year highs this week. Now, the cryptocurrency is gaining ground again, surging over 7% in its value since the beginning of the day (UCT) as it sprints towards the $750 marker.
The Bitstamp Price Index (BPI) was trading at $695.15 at midnight leading into the day. At the time of publishing, the BPI shows bitcoin trading at $750.11.
Today’s surge began at the stroke of midnight when the BPI stood at $695. At 01:18 AM, bitcoin price had already scaled up to $730.59. Subsequently, a steady pattern of making gains has pushed trading value up to the $750 mark.
Several factors have been cited by observers to explain the remarkable rise in the value of bitcoin, the most popular cryptocurrency with a market cap now exceeding $10 billion. The upcoming halving event (CCN’s handy countdown is available on the homepage) in July where miners’ rewards will decrease from 25 BTC to 12.5 BTC upon the completion of every mined block is seen as a prominent reason.
So too, is an increased demand for the cryptocurrency from a massive influx of new everyday Chinese investors who are pulling their money out of other markets to pool it into bitcoin. Gloomy economic forecasts and a weakening yuan is only strengthening the investors’ resolve, resulting in a massive tide of capital outflows away from the country.
Jack C. Liu, the chief strategy officer of OKCoin, China’s largest bitcoin exchange which sees over 90% of the global trading of bitcoin recently stated:
The halving of the supply of Bitcoin is attracting many retail investors. More broadly, we continue to see follow-through from the blockchain hype cycle translating to interest in bitcoin the asset.
Bitcoin is also seeing its highest trading value in Yuan since 2014, pushing toward the 5,000 mark in the OKCoin charts.
The burgeoning bandwagon heralding the “blockchain and distributed ledger” as an innovation is gaining backers from economists, multinational corporations and even central banks which brings bitcoin into the focus by inadvertently backing the cryptocurrency.
For a live Bitcoin Price chart, click here.
For yesterday's daily bitcoin price analysis piece from CCN resident analyst Venzen Khaosan, click here.
All time references are in Coordinated Universal Time (UTC).
Featured image from Shutterstock.