Whoa! Did you see that?
Bitcoin price has suddenly surged to reach the $500 mark. Until Friday, the digital currency has been hovering around the $450 mark before it started to exhibit an upward trend gaining about $50 within a span of two days. The volatility associated with cryptocurrency prices is a well-known fact, which is mainly due to the demand and supply of the crypto assets for trading. The current surge in Bitcoin price has been attributed to increased trading activity in China and Korea, a 10% premium has been there in these countries for a very long time.
The price rise was first observed in the Chinese exchanges. OKCoin and Huobi were the first bitcoin platforms to see an increased demand for the digital currency, resulting in the price to rush past the $500 mark in no time. But the increase in price has been a bit slow to catch up with the Western market. The last time Bitcoin price crossed $500 was during the month of November 2015, when it briefly spiked to cross the $500 mark only to settle back $400-$450 range in the next few days.
While the current trading price of one bitcoin is currently around $499-$500 in the US market, the same is being traded for an upwards of 3500 Yuan, which is equivalent to $533 on OKCoin. As always, the increased demand has been attributed to the weakening Chinese economy due to the devaluation of the country’s legal tender, yuan. The Chinese have started to consider Bitcoin to be an alternative investment option as the country maintains strict capital controls, preventing people from investing in other currencies or assets outside the country. As Bitcoin Price Surges, Ether Registers a Slump
As the Bitcoin price continues to rise, traders across the world have started trading […]
