Bitcoin surpasses $800 for the first time in 3 years
The price of a single bitcoin touched a fresh three-year high on Wednesday with U.S. and European buyers accounting for the bulk of trading volume.
Bitcoin prices have been rising steadily this year, but accelerated after the U.S. election results sent the U.S. dollar flying. Chinese traders were big bitcoin buyers, seeking protection from the rapid depreciation of the Chinese yuan, also known as the renminbi, which has weakened as the U.S. dollar has strengthened.
Traders in the West have also contributed to the digital currency’s rise, using it as a hedge against the political and economic implications of President-elect Donald Trump’s administration. Also, the U.K.’s June vote to leave the European Union, and perceived risk associated with a string of key European elections in 2017, have coaxed European investors to embrace bitcoin.
Bitcoin US:BTCUSD traded as high as $822 on Wednesday, surpassing the $800 market for the first time since January 2014, according to pricing data from Coin Market Cap. The majority of trades were transacted in U.S. dollars, euros and pounds, the data showed.
This is an important milestone for bitcoin, analysts said. The cryptocurrency has finally taken out its February 2014 high, which it reached just before Mt. Gox, then one of the world’s largest cryptocurrency exchanges, announced that hackers had stolen millions of dollars’ worth of customer bitcoins. That news effectively ended a period of exuberance that had sent bitcoin to an all-time high just below $1,200 in late 2013.
Coin Market Cap
The digital currency is often used as a hedge against inflation and uncertainty, according to Charles Hayter, the founder and chief executive officer of CryptoCompare, a website that provides data and analytics about the currency market.
Bitcoin’s move comes as the U.S. dollar, the world’s most heavily traded currency is nearing multiyear highs. The ICE U.S. Dollar index DXY, -0.29% , which measure the greenback’s strength against a basket of six rival currencies, was trading just below a 14-year high on Wednesday.
The Chinese yuan USDCNY, -0.1208% , meanwhile, traded near its weakest level in eight years, with one dollar buying 6.94 yuan in recent trade.\
Via:http://www.marketwatch.com/story/bitcoin-surpasses-800-for-the-first-time-in-3-years-2016-12-21
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