Bitcoin (BTC) Is on the Rise
The Bitcoin price (BTC price) has recently hit the $1,000 level, a threshold that the cryptocurrency hasn’t been near since late 2013.
The Bitcoin price rose nearly 130% in 2016, spurred on by political instability in several countries and the devaluation of the Chinese yuan, among other factors. (Source: “The Price of Bitcoin Just Topped $1,000,” Fortune, January 3, 2016.)
See the below excerpts from my previous reporting on why the Bitcoin price has surged in the past year.
China has had quite the 2016. Between being a large target of much of the animus in President-elect Donald Trump’s election campaign, and the country’s struggles with its currency, the yuan, all has not been quiet on the Eastern Front, financially speaking. And this may be exemplified by the Bitcoin price (BTC price).
But what’s driving the shift to Bitcoin? Among other things, it appears that China is a big part of the engine that drives the Bitcoin price. With the country’s harsh monetary policies and the aforementioned weakening yuan, some are looking to BTC to help safeguard their money’s value.
The yuan may drop below 7.00 per U.S. dollar, which would be the lowest level since 2008, so investors may see a high Bitcoin price as a port in the storm.
China’s foreign-exchange reserve fell by about eight percent in 2016 to $3.05 trillion as of November 2016, which coincided with the weakening yuan.
Deutsche Bank AG (NYSE:DB) strategist Gautam Kalani recently called the yuan “the most expensive” currency in the world on a trade-weighted basis. …
With the U.S. dollar gaining strength and the U.S. Federal Reserve set to hike interest rates throughout the year—which will lend another boost to the “Greenback”— the yuan’s continued free fall in relation to the dollar may push the Bitcoin price up at an even higher rate than we saw in 2016.
With that in mind, Be sure to keep an eye on BTC, going into what may be a year of new highs for the online currency.