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  • Last Posted: 2017-06-14 08:41:01
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Bitcoin Resumes Surge after Hitting Record Low

2017-02-01 01:45:55

Bitcoin prices resumed its rally following it reached its record in the last few weeks.

On January 13, bitcoin stood at $817.34, up $16.60 or 2.06%. The digital currency previously traded at $776.95, down by over 6%. That initial selling was still higher than Thursday’s low of $752.46, implying it could be interrupting a short-term bottom. The virtual currency had an erratic beginning to the year. It surged by more than 20% in the first few days, touching a 2017 peak of $1,161.88, before losing over 35%.

What caused this movement?

China’s central bank urged a more rational rationale for investing on the cryptocurrency and start probing bitcoin exchanges in Beijing and Shanghai on the following allegations: money laundering, market manipulation, and prohi market manipulation, and other related issues.

But the People’s Bank of China, in a statement posted on its official website, did not disclose if they discovered any violations on investigating exchange operators such as BTCC, Huobi, and OKCoin. They also met executives of the bourses in question.

Chinese officials have beefed up its efforts to curtail cash outflows and mitigate the pressure on the renminbi, which erased more than 6.5% to the US dollar in 2016, its worst level since 1994.

Data by Bitcoinity showed 98.3% of trading volume has been in the yuan in the last six months. The greenback came second at 1.3%. On a normal basis, this asset trades at a premium in the Asian country, with few trading fees bolstering the demand and volumes.

Some investors consider bitcoin as an alternative to offset the yuan’s plunge and evade capital controls curbing how much foreign exchange traders can purchase every year. Not to mention the cryptocurrency has an almost anonymity feature.

As of present, the digital currency has a market capitalization of under $15.9 billion. The virtual currency escalated in 2013, chiefly because of a belief that it would replace legal currencies in circulation, emasculate the Wall Street, and knock governments lent a nearly religious tune to what was otherwise a casino ideology.