Bitcoin price soars past $1060 as political worries intensify

The price of a single bitcoin on Tuesday touched its highest level in more than a month as populists in the U.S. and Europe threaten the established political order, increasing the appeal of alternative investments like cryptocurrencies, market strategists said.

The price touched $1,060

US:BTCUSD

 on Tuesday, according to Coin Market Cap. That’s its highest level since Jan. 4, when bitcoin traded as high as $1,100, its highest level in more than three years.

A poll released over the weekend showed Marine Le Pen, the far-right candidate representing France’s National Front party in the April presidential election is poised to win the first round of balloting. The news sparked a selloff across European bond markets, and rattled stocks.

Read: Treasurys boosted; Europe election jitters set tone

Bitcoin’s valuable more than doubled in 2016, largely thanks to Chinese buyers who hoped to protect their wealth from a rapidly depreciating Chinese yuan

USDCNY, +0.2724%

 by using bitcoin to circumvent stringent capital controls.

The U.K.’s June vote to leave the European Union, U.S. President Donald Trump’s unexpected electoral victory and the rising popularity of far-right candidates in France, Germany, Italy and the Netherlands have made the political situation in the West appear increasingly precarious, market strategists said.

The dollar gained 0.3% to trade at 6.88 yuan on Tuesday.

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Previously, the currency’s valuation languished in 2015 and 2014 after the collapse of popular bitcoin exchange Mt. Gox effectively ended a speculative bubble that saw the price of a single coin climb to an all-time high around $1,2050 in late 2013.

Bitcoin weakened sharply in January after Chinese authorities announced they would investigate the country’s largest cryptocurrency exchanges to ensure compliance with local laws. Initially, investors feared this could signal a shift to a more aggressive approach by Chinese regulators who had previously left the cryptocurrency world more or less along.

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Instead, Chinese authorities appear to have reached an understanding with local exchanges. Several exchanges adopted a 0.2% trading fee to cut down on market manipulation while strengthening controls to prevent money laundering, all in accordance with regulators’ wishes.

Others are betting that the U.S.’s first bitcoin-focused exchange-traded fund now faces an easier path to approval thanks in part to the unexpected electoral victory of President Donald Trump, who has promised to scale back financial regulations. The Securities and Exchange Commission is expected to make a decision by March 11.