Surging Bitcoin Price Is Appealing To Chinese Depositors
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.
CHINA REMAINS VERY BULLISH ON BITCOIN
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.