Bitcoin price has been going upwards from the past three weeks. The digital currency has broken almost all the barriers by reaching a two-year high, surpassing the $700 mark earlier today.
Bitcoin price, which was hovering at around $450 three weeks ago crossed the $500 and $600 marks in two consecutive weekends. This week, the same happened, but a bit late. The price rise started earlier this Sunday and continued until it crossed the $700 mark.
The price rise of this magnitude was not expected until the network halving, which is supposed to happen later next month. But the sudden demand for Bitcoin in the Chinese market seems to accelerate the price rise. As the value of Chinese yuan drops, people have started to invest in bitcoin to protect their earnings. The decentralized nature of Bitcoin makes it easier to invest, circumventing the strict capital controls introduced by the Chinese government that prevents the Chinese from investing in foreign assets.
As yuan digs itself deeper into trouble, following two rounds of devaluation by the government. The trading activity from Mainland China has sustained for three weeks. How long it will continue is, however, uncertain. Also, there are speculations that the price of digital currency may again increase for a brief period once halving takes place. However, this may soon take a downward turn as a certain percentage of miners may quit due to reduced returns and increased energy costs.
It is also worth mentioning that some of the mining companies are already feeling the heat of increasing energy costs and the requirement for more processing power. KnCMiner, the Swedish mining company recently ended up filing for bankruptcy due to increased costs of operation. We don’t have to wait for too long to know the fate of bitcoin as July is almost near and halving, round the corner.
Wealth Manager Canaccord: ICOs Could Become Commonplace
Initial coin offerings (ICOs) could one day come to be seen as similar to initial public offerings (IPOs), according to a new report from financial services firm Canaccord Genuity.
Alleged Bitcoin Launderer Faces Extradition Hearing Next Month
An alleged money launderer tied to the defunct BTC-e bitcoin exchange and wanted by both Russia and the U.S. will attend an extradition hearing next month.
The Dec. 6 hearing, The Associated Press
Fujitsu Eyes Cryptocurrency Trading With Cross-Blockchain Payments Tech
Japanese IT firm Fujitsu has unveiled a new payments technology designed to facilitate transactions between blockchains.
Announced today, the "ConnectionChain" project is aimed at providing a way f
Brokerage Chief: Bitcoin Futures Must Be Quarantined
A well-known electronic brokerage firm is issuing dire warnings against the CME Group's plan to launch a bitcoin futures contract next month.
But Interactive Brokers, in a comment letter dated Nov.
Tezos Founders Hit With Second Class Action Suit
For the second time in less than three weeks, a lawsuit has been filed against the founders of the Tezos project.
Pursued in the U.S. District Court in Florida, the suit alleges Tezos founders Arth
India's Supreme Court Prods Government on Bitcoin Regulation
The Indian Supreme Court has asked the government to respond to calls to regulate bitcoin.
Three justices issued a notice to the central bank, the market regulator, the tax department, and several
'Big Four' Firm KPMG Joins Blockchain Advocacy Group
Accounting giant KPMG has become the latest member of the Wall Street Blockchain Alliance (WSBA).
Joining the non-profit trade association as a corporate member, KPMG will assume a seat on its boar
Morgan Stanley CEO: Bitcoin Is 'By Definition Speculative'
Morgan Stanley chairman and CEO James Gorman has said that bitcoin is "punching above its weight," according to a news report.
Speaking to CNBC this morning, however, Gorman further said that the c