Demand in Asian markets
Most experts have pointed towards fears in China and Asia that the yuan could depreciate as reasons for increased investment in bitcoin.
“Signs indicate Bitcoin’s price has become linked to a number of macroeconomic factors in China,” said Vijay Michalik, research analyst for digital transformation at consultancy Frost Sullivan, to CNBC in an email.
“It highlights growing concerns about yuan currency deflation, as bitcoin’s appeal has grown as an alternative asset class for a population deprived of many investment choices.”
James Lynn, U.K. managing director at investment company Billon Group, corroborated this view.
“The most likely explanation appears to be linked to market confidence in the Asia region, with low confidence in local currencies providing a major boost to bitcoin demand,” he told CNBC in an email.