Bitcoin price is persevering and strengthening again as the effects of the PBoC-led crackdown on Chinese bitcoin exchanges continues to diminish.
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Bitcoin reached a high of $1,052 on Friday at 13:45 UTC in a continuing week of gains following last week’s steep fall when two of China’s biggest bitcoin exchanges froze withdrawals for a 30-day period. The value of the cryptocurrency is cementing itself above the $1,000 level even as trading volumes in the traditionally major trading market in China, falters.
At the time of publishing, bitcoin is trading to the dollar at $1,051.61, sticking to its momentum.
Less than 50 days into 2017, Bitcoin has already had a dramatic year. The cryptocurrency rang in the new year by breaching the $1,000 milestone and soon reached gold parity. Price reached an all-time high in China and the total value of all bitcoins in the market crossed $17.5 billion.
On January 4th, bitcoin price scaled beyond $1,100 and was rampantly approaching the all-time high of $1,163 on the Bistamp Price Index (BPI), scaled toward the end of 2013.
Two days later, bitcoin price had crashed below $900 as traders panicked to engage in a major sell-off after the People’s Bank of China (PBoC), China’s central bank, revealed meetings between its officials and representatives of the country’s biggest bitcoin exchanges. Price crashed again on January 11 following “on-site checks” of these exchanges by the PBoC.
Bitcoin lost nearly a quarter of its value (24%) by the end of the first calendar week of 2017. On the second occasion, price dropped as much as 19% due to the PBoC’s actions.
Last week’s announcements of pausing withdrawals by OkCoin and Huobi, two of China’s largest bitcoin exchanges by trading volume, led to price collapsing to reach a low of $913, seven days ago. The central bank’s measures toward enforcing its new norms saw price affected by a 14% drop, underlining a trend where bitcoin shows resiliency against the PBoC’s actions.
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Today’s bitcoin price analysis piece from CCN analyst Jim Fredrickson will be published shortly.
Image from Shutterstock. Charts from BitcoinWisdom.