It has been a pretty stellar weekend for Bitcoin enthusiasts all over the world so far, as the price keeps going up and there is no end in sight. Albeit some resistance has been made at an earlier peak, the Chinese market keeps driving the demand for Bitcoin to new heights.
Any significant Bitcoin price swing always seems to originate from China, and it is no different this time. Chinese exchanges are setting the pace for new highs in 2016, and their demand for the popular cryptocurrency is not diminishing by any means. Some experts think this has to do with capital flight, although that has still not been verified to this point.
Taking a look at where the Bitcoin price was one year ago today – at roughly US$230 – a lot has changed ever since. At the time of writing, the Bitcoin price is well above the US$500 mark, and depending on which exchange one looks at, even over US$520. Quite a change of events in a year, to say the least.
There is a certain truth to why Chinese investors are flocking to Bitcoin, though. It has become increasingly difficult to move funds out of the country, either through traditional means or precious metals such as gold bullion. With very little options remaining to actively move funds out, Bitcoin is a welcome alternative.
China has always been driving the Bitcoin price upwards, ever since the cryptocurrency started gaining mainstream traction. Plus, there are over US$30 trillion in deposits which could get moved out of the country at any time, but it is hard to do so. Even if only a fraction of that money finds its way to Bitcoin, the Bitcoin price trend will continue to rocket for a very long time.
There is also the upcoming Bitcoin halving to take into account, which may have another boosting effect on the Bitcoin price. Several industry experts expected a major Bitcoin price shift before the halving took place, and it seems they were right. How long this trend will continue, is anybody’s guess right now, but it is the first time since 2014 since we have seen these Bitcoin price levels.
Source; Zerohedge
If you liked this article follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.
Dogecoin's 2021 rally was a historic one, turning ordinary investors into overnight millionaires. This magnificent…
The crypto market is always evolving, with big names like Bitcoin and Ethereum leading the…
The crypto market is ablaze with excitement as altcoins like XRP and BNB make major…
Rollblock is quickly becoming the best crypto presale to buy, delivering unmatched value for its…
While Rollblock's continues its crypto presale, with its value increasing regularly, Polkadot (DOT) and Uniswap…
As the cryptocurrency market gears up for a bull run, IntelMarkets (INTL) is attracting significant…