The price of bitcoin declined in the latter half of the week after coming within striking distance of 2016 highs on robust demand from emerging markets.
The BTC/USD exchange rate was down 1% at $731.20 Saturday at 12:19 pm ET (17:19 GMT). The pair briefly traded near $755 on Wednesday before returning lower. The BTC/USD established a two-year high of $781.31 in mid-June, according to CoinDesk.
Bitcoin has built strong support above $700 after the government of India decided to purge high-value currency notes, leaving investors scrambling for alternative stores of value. The cryptocurrency has been supported all year long by growing Chinese demand in the wake of repeated yuan devaluations and stricter capital controls. Cryptocurrency has also become a more viable investment vehicle among the digitally-savvy mainstream. As a result, by the end of November, bitcoin will have enjoyed its strongest stretch above $500.
Further devaluation of the yuan could push bitcoin prices higher in the short-term, as investors look to diversify away from volatile fluctuations in fiat currencies. The US dollar is currently enjoying its strongest bullish streak in well over a decade, as investors view a December