The value of bitcoin was little changed over the weekend, as the market digested sizable gains Friday that pushed the cryptocurrency to nearly one-month highs against the US dollar.
The BTC/USD exchange rate was trading at $615.99 Saturday at 1:57 pm ET, virtually unchanged from the previous close, according to CoinDesk. The pair traded within a narrow range of $616.50 and $618.46. The BTC/USD is facing strong resistance at its current price level, which also represents the 100-day moving average.
The US dollar experienced large gains against a basket of other major fiat currencies this week, as investors grew more confident that the Federal Reserve will raise interest rates in the coming months. Traders are pricing in a nearly 70% probability of a December liftoff, according to the 30-day Fed Fund futures prices.
Bitcoin has advanced more than 1% against the dollar this week, reaching its highest level since September 11. The cryptocurrency has slowly regained momentum over the past three weeks following a series of wild swings that was partially attributed to single traders changing their positions. Individual players continue to exert are large influence on bitcoin’s price, which reflects liquidity challenges in the market.
China has been a major source of volatility for bitcoin, as investors there look to diversify away from yuan-denominated assets that are subject to capital controls and influenced by domestic policies. The Chinese economy is also undergoing a painful restructuring process that is creating significant uncertainty about its future. However, this restructuring isn’t linear, as Beijing continues to rely on traditional growth drivers to move its development plans forward. For these and other reasons, more Chinese are attracted to bitcoin.
Bloomberg has reported that investment in conventional Chinese assets has declined significantly this year. At the same time, demand for bitcoin is surging. According to NewsBTC, in August the BTC/CNY exchange rate was responsible for 90% of trades involving bitcoin.
In crytocurrency news, the US Federal Bureau of Investigation (FBI) is probing the theft of $1.3 million bitcoins from an unnamed Bitfinex account. CoinDesk reports that the alleged theft occurred September 14.
Bitfinex was subject to a massive cyber attack in August that compromised some $70 million-worth of bitcoins. The event triggered a large selloff in the BTC/USD.
EconomicCalendar.com provides the latest economic news and financial events that move the market.