Bitcoin Price Consolidates Above $700 After Re-Test of 2016 High

The value of bitcoin declined Saturday, but remained supported above $700 after a post-election rally earlier this week.

The BTC/USD fell 1.4% to $706.42 at 12:48 pm ET, according to CoinDesk. The pair traded within a daily range of $703.88 and $717.76.

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A stronger dollar was partly responsible for the reversal in bitcoin’s fortune. On Friday, the US dollar traded at fresh nine-month highs against a basket of other major currencies, as investors continued to anticipate a US rate hike by the Federal Reserve next month.

Bitcoin has surged 11% against the dollar over the past month as part of a broad consolidation trend following mid-summer volatility. The cryptocurrency was also supported by continued buying interest from China, where investors are diversifying away from yuan-denominated assets. India is also a growing source of bitcoin optimism amid the latest rupee controversy.

Bitcoin tested 2016 highs earlier this month, reaching a settlement high of $742.46 on November 2. That was the highest since the June 19 settlement of $764.04.

Propelling bitcoin forward is growing awareness about its utility, especially as a risk-off asset. Investors, speculators and innovators are now eager to capitalize on the growing market. While bitcoin is unlikely to dethrone cash anytime soon, it is increasingly viewed as an alternative to fiat currencies at a time of record global quantitative easing.

Bitcoin’s safe haven appeal was on display earlier this week after Republican wildcard Donald Trump became the 45th President of the United States. News of Trump’s victory late Tuesday triggered volatility in the markets, leading precious metals, bitcoin and other haven assets higher. Volatility soon faded and US stocks regained momentum, leading to a sharp decline in haven instruments.

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