After a month of dreaded stability, the price of Bitcoin began to surge rapidly, increasing from US$590 to $610 in a matter of hours.
Amidst many speculations, financial experts believe that the ongoing rally in Bitcoin price is highly affected by an unexpected devaluation in Yuan announced during the G20, an international meeting of the governments and central bank governors from 20 major economies.
Yuan Devaluation Pushing Demand
China, despite the unclear regulatory frameworks and policies established by the government, maintains the largest Bitcoin market in the world, with some major exchanges with substantial trading volumes and demands. Research institutions and financial companies presume that the devaluation yuan pushed the demand for Bitcoin further, causing local investors to purchase Bitcoin at higher prices.
Investors and traders on OKCoin, China’s largest Bitcoin trading platform, have been trading Bitcoin at around US$614 on average over the past 24 hours, due to an overwhelming demand from the local population.
In contempt of the price stability of Bitcoin, the Bitcoin network’s hashrate demonstrated strong mining margins over the past year, increasing exponentially since October, 2015.
Read more ... source: LiveBitcoinNews
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