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Bitcoin Nears Its Highest Level in 2016 Due to Chinese Demand

December 8, 2016 at 19:29 by Yahia Barakah

The price of Bitcoin headed upward on Thursday, to near its highest level in 2016 for the second week in a row. The digital currency has been steadily rising for the past 3 days as demand from Chinese investors rose due to higher need for safety.

The devaluation of the Chinese yuan that the People’s Bank of China is leading has forced the nation’s currency to its lowest level since 2008. Chinese investors worried about the value of their capital in the local currency are choosing Bitcoin as their safe haven asset against the devaluation, since capital control laws in China greatly limit the movement of funds.

BTCC, one of China’s leading Bitcoin exchanges, has seen a stable increase in trading activity over the past months. BTCC CEO Bobby Lee said in an interview with Bitcoin Magazine that China is witnessing record trading volumes in the current quarter due to the continued devaluation. He added that he believes the virtual currency might rise past $1,500 in 2017.

Bitcoin’s price moved higher today, even as Circle Internet Financial, one of the best funded bitcoin startups, said that it will no longer allow its customers to use the digital currency. Instead, Circle will focus on Spark, a technology based on blockchain that is yet to be released, which will allow users to easily move money across borders.

BTC/USD traded at 767.9 as of 19:15 GMT today, after rising to 772.1 at 11:25 GMT, the pair’s highest level since December 2. BTC/USD opened trading today at 763.9.

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

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