Bitcoin followed bullish sentiment, jumping above $900 during the Christmas sessions.
The digital currency’s price hit even $911.99, while such level was not seen since January 2014, so we are getting close to reach a 3-year high.
Over the day, the price was seen trading around the $900 level, expecting more hints to move the price.
The development comes only two days after markets worldwide crossed the $800 mark, followed by additional action yesterday that saw the price exceed $870 before dipping.
Analysts point to a number of factors behind the bullish run for digital currency. Chief among them, is China’s undoubted influence in bitcoin trading. Home to over two-thirds of the world’s bitcoin mining power and over 90 % of the cryptocurrency’s trades, bitcoin is seen as a natural hedge against the devaluation of the yuan. Confidence behind the fiat currency is dwindling, driving Chinese traders to place their bets and investments in bitcoin.
As demand increases and supply shortens bitcoin price has made remarkable gains since early October this year when the yuan hit its lowest level in six years. That psychological low has spurred on bitcoin in a continuing rally that continues to last. The unexpected victory of US president-elect Trump has further contributed to the lack of confidence in the yuan.
Along the way, China’s neighbor India has also helped drive currency’s demand and price, due to the much-publicized and controversial demonetization drive enforced by its government in November.
As quoted by the Australian Financial Review, Sam Lee, CEO of Australian miner Bitcoin Group, stated:
“We are seeing a wave of Indian buyers looking to circumnavigate the recent push to remove large slabs of cash from circulation and who otherwise have trouble moving fiat currency.”
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