China Pumps Bitcoin to 21 month high at $580
This week was exciting to watch the price of bitcoin break out sharply on May 27 Thursday night. Price blew the cap off the 3000 Yuan price, a 6 month resistance level. Momentum was driven by Chinese volumes, leaving Western exchanges with no option but to follow the trend.
For a while, price arbitrage between Huobi and Bitstamp was as much as $70, after Huobi soared as high as $580, before retracing to $550 as of writing this.The overall market cap is now over $8 billion and bitcoin is back on the news.
With the halving supply just around the corner, only 40 days away, mainstream media is beginning to take notice, as all sorts of rationalizations are bandied about to justify the price rice.
A zerohedge article, ‘Bitcoin Is Soaring On Unprecedented Burst In Chinese Buying’ cited Yuan devaluation fears as the impetus for the dramatic upswing, or even possibly part of $30 trillion in deposits fleeing capital controls. There’s been a reported doubling in trading in the last 4 days exchanges in China, although