The last week of 2016 has seen bitcoin price rising upto $970 thus surging towards the $1,000 mark. Bitcoin price made a significant gain of over 34 % in the last month alone. It rose from $727.18 on 29 November 16 to an all time high price of $980.74.
Having risen steadily through most of December’s trading period, the price of bitcoin to the dollar moved from $791.41 on December 20 to $870.78 on December 22. In the remaining days to 2016 rounding up, bitcoin price broke through the $900 mark in the final 7-day period of 2016. On christmas day the price reduced to $860 mark , however, there was a surge the following day to $900 .
On 27 December, price scaled to a new high of $935.89 before crossing the $950 mark in the early hours of trading on 29 December. The final hour of the day had price strike $975.00 before peaking at a new 2016 high of $980.74 at 01:40 (UTC), Thursday, December 29. At the time of publishing, bitcoin price is trading at $976.
A number of factors have been attributed the cryptocurrency’s strong surge. The ongoing cash crisis in India and the spate of hyperinflation in Venezuela have contributed to swelling demand for bitcoin as a safe asset in times of cash crunches and economic uncertainty. The recent murder of the Russian ambassador in Turkey has spurred on European buyers to seek and invest in alternative assets like bitcoin, according to one Bloomberg report.
The Telegraph reports, “one bitcoin was worth £782.49 on Wednesday, above the £694.65 it reached on November 29 2013.”
The most plausible theory for the increasing demand and subsequent rise in bitcoin’s value is China’s ever-expanding appetite for the cryptocurrency in the face of a devaluing yuan. US president-elect Trump’s unexpected successful run to the White House has further dampened confidence in the yuan among Chinese investors who are turning to bitcoin as a store of value.
The result of the shortening supply and increasing demand for the cryptocurrency has resulted in bitcoin’s market cap scaling $14 billion on December 22 before hitting $15 billion yesterday. At the time of publishing, bitcoin’s market cap has reached an all-time high of $15.62 billion. It has been predicted that by 2017, the price of bitcoin will surge to over $2000.
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