Bitcoin price has been in the spotlight of the financial media lately with its soaring value and is understandably getting plenty of attention. In a televised interview on Bloomberg , an executive at BitPay – the largest payment processor in the industry, outlines his reasons for the price swell.
Sonny Singh, chief commercial officer at BitPay appeared in a televised interview on Bloomberg where he was asked about bitcoin’s recent rally. The rapid price surge began over the past few weeks to break the $750 ceiling late last week, hitting a 28-month high for the cryptocurrency.
Inevitably, the primary factor he cites is the demand from new Chinese investors who are looking at the cryptocurrency as a store of value. Chinese Stuttering Economy, the Demand for Bitcoin
The first opening session of 2016 when Chinese stock markets opened on a Monday saw shares dip to their worst ever start to a year , plunging 7%. China’s new “circuit breaker” measures were enforced to prevent further losses and volatility in the stock market.
Some of the factors for a slowdown of the Chinese economy is diminishing activity in an otherwise factory-intensive manufacturing Chinese industry that has a telling effect on the wider economy. While manufacturing numbers are down, increasing food prices are among the primary factors for inflation.
To improve the stagnating economy, China’s central bank has notably lowered its lending and deposit rates’ benchmarks and has notably lowered the minimum ceiling of mandatory cash reserves mandated for banks.
These factors and more have led to Chinese Yuan depreciating in value with the offshore Yuan following along the same path. As a result, Chinese investors are flocking to the cryptocurrency.
“China has a very big and active bitcoin trading population,” Singh stated pointing to the reason behind significant price swings of the cryptocurrency. Britain […]
