The price of a single bitcoin has surged in the last 24 hours, hitting a 20-month high as a result of stronger demand from China, where a devalued yuan has seen investors looking to overcome currency controls.
Since just after 4 a.m. EDT Friday, the price of bitcoin has surged 5 percent, hitting a high of $479.39, according to CoinDesk’s price index, a value not seen since September 2014 when the cryptocurrency was in free fall from its all-time high of more than $1,000 per bitcoin.
While the sentiment around bitcoin is currently strong, particularly in relationship to the blockchain technology underpinning the digital currency, the main reason for Friday’s spike is the devaluation of the yuan in China. According to analysis from Cryptocoinnews, the increased demand from China could see the price of bitcoin break $500 soon.
On Chinese markets, the price spike has been even more striking, with one bitcoin selling for $499 at the time of publication on Chinese bitcoin exchange BTCC, which also reports a surge in the volume of bitcoin being traded for Chinese yuan Friday morning as investors seek to circumvent foreign exchange restrictions placed on the currency by the government.
The price of bitcoin has been relatively stable for the last three months, something for which the cryptocurrency is not known, staying between $420 and $450.
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