Bitcoin Price Charges towards $300 as China Cracks Down on Underground Banks

Bitcoin price and market value have been less than volatile for the majority of 2015, but a Bitcoin bull market run has been started in China recently. The last two weeks have seen price values increase as much as 20%, peaking at US$295 on Sunday. This coincides with recent currency market manipulations of the Chinese Yuan/Reminbi by the Chinese government.

If you don’t know why the Bitcoin market is up, it’s probably China

In the West, speculation of why Bitcoin has been on a “bull run” have centered around the recent EU VAT tax ruling in Bitcoin’s favor, but nothing correlates directly to the spike like the moves made in China. Provided by ZeroHedge in the chart below, you can see the positive effect the Chinese capital controls have had on bitcoin demand.

Oddly, Bitcoin demand has been much more linear and consistent in its movement than gold has been worldwide since actions began September 15, and gold has fallen recently while bitcoin has accelerated upwards.


As Cyprus, Argentina and Greece have already discovered recently, massive capital controls by the central government are counter-productive. Bitcoin provides

Read more ... source: TheBitcoinNews