Bitcoin is once again providing great opportunities for traders and investors with great volatility on a long term rising trend. The BTC/USD exchange rate now edges closer to $750 after falling to the $700 level just a number of days ago. It thus completed a rise of a $100 in price in less than a month.
Looking deeper at the numbers, we can see that the BTC/USD exchange rate jumped by 5% in just the last 24 hours on the back of huge trading volumes. Transactions worth over $165 million took place during this time in USD trading alone while RMB volumes are normally 900% bigger.
In total, the overall valuation of all bitcoin in circulation is now back above $12 billion – a benchmark market cap not seen for a while.
An obvious reason for the very recent jump in price is not immediately available. In online bitcoin trading forums speculations mainly include rumours of massive buy-ins by wealthy Chinese trying to hedge against the intentional devaluation of the yuan (RMB) or a possible post-Trump protectionist trade war.
Looking farther for a reason for investors to turn to bitcoin we would still remain in Asia as India is undergoing a massive economic experiment as the moment. Last week the Indian Prime Minister Narendra Modi announced without prior warning that high-denomination rupee notes are to be taken out of circulation. The government thus wiped out about 80% of cash in an attempt at a cure for corruption and “the disease of black money”, as unreported income is referred to in India.