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Bitcoin Moves past $1,000 for the First Time in 3 Years

January 2, 2017 at 18:26 by Yahia Barakah

The price of Bitcoin is on a rapid rise. The cryptocurrency broke through the $1,000 level for the first time in three years on Monday, as geopolitical uncertainty and asset hedging continued to lift Bitcoin higher.

Bitcoin has been on a steady uptrend in recent months. Investors increased their demand for the digital currency as they became more aware and interested in its decentralized features that allow it to be a good option for capital safe keeping.

The bulk of the demand for Bitcoin as a safe haven came from China, as the People’s Bank of China maintained its goal of devaluing the Chinese yuan at a time when the US dollar is growing stronger. Chinese investors sought safe haven assets for their capital that are still accessible under China’s capital control laws to avoid losses inflected by the local currency’s exchange rate. Chinese demand was one of the main drivers for recent spikes in Bitcoin’s price.

Bitcoin, which rose by 137% in 2016, also received a strong boost following Donald Trump’s victory in the US presidential election on November 8. However, the price increase that the digital currency enjoyed did not slow down the strong global demand. A sudden decision by India’s government to ban the 500 and 1,000 rupees banknotes added to mounting economic and geopolitical factors that increased demand for Bitcoin.

BTC/USD traded at 1022.9 as of 18:05 GMT on Monday, after touching 1031.4 at 16:25 GMT, the pair’s highest level since November 2013. BTC/USD started trading today at 996.9.

If you have any questions and comments on bitcoin today, use the form below to reply.

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