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Bitcoin Price Touches Highest Level Since January 5, Floats near $1,000

February 2, 2017 at 19:51 by Yahia Barakah

The price of Bitcoin moved past $1,000 on Thursday for the first time since January 5, before edging lower to float around the level that has psychological importance. The virtual currency enjoyed steady gains this week, as traders moved to exchange platforms that charge no trading fees.

In China, a large percentage of Bitcoin trading volume shifted to new exchanges that charge no trading fees. The move followed a decision by major Chinese exchanges to stop offering trading services that are free of fees at the request of the People’s Bank of China. Bitfinex, BTCC, and Poloniex were among exchanges to start charging fees.

BTC100 and CHBTC, two lesser known exchanges that compete against more established exchanges, saw a huge surge in volume over the current week as investors flocked to their fee free trading environment. It is not yet clear how China’s central bank will react, or whether it will have any reaction at all.

Bitcoin price had moved higher than $1,000 on January 1 for the first time in three years, before rallying by 20% in the first five days of the current year. The rapid rise was only met by a quick crash as concerns towards China’s crackdown on the trading of the digital currency took away 35% of its value.

However, rising stability in the market added to the effect of uncertainty in the United States towards Donald Trump’s presidency, which increased demand for the currency since his inauguration day. Today’s gains extended Bitcoin’s winning streak to six sessions in a row, and put the total increase since Trump took office to 10%.

BTC/USD traded at 1002.71 as of 19:30 GMT on Thursday, after touching 1004.99 at 16:55 GMT, the pair’s highest level since January 5. BTC/USD started the day at 984.41, before moving to 976.04 by 03:20 GMT, but the pair steadily rose since then.

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

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