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Bitcoin Remains Strong, Shows No Sign of Slowing Down

November 2, 2016 at 17:47 by Yahia Barakah

Bitcoin is rising rapidly as it continues its strong trend from last month when the virtual currency traded near its highest level since Brexit.

The rally of Bitcoin is attributed in part to the rising demand from China as the yuan trades at the lowest level in 6 years, which is forcing the nation’s investors to search for alternative methods of hedging their funds due to capital control laws imposed by the central bank of the country. Political uncertainty in the USA prior to the presidential election on November 8 is also contributing to the appreciation of the digital currency.

The introduction of new digital currencies did not slow down the advance of Bitcoin. Zcash, one of the key competitors for the famous cryptocurrency, was introduced last week and it uses its own distinct blockchain. Its launch created a bit of volatility in the market before Bitcoin returns to rising again. Traders forecast a bullish trend for Bitcoin during November following a surge by almost 20% in October as confidence in the virtual currency continues to rise, improving its stability and future potential.

Taking notice of the increased transaction activity due to rising prices, the Bitcoin Core team introduced the next SegWit phase in their 0.13.1 Core client, which segregates the witness as a solution for the block size issue to allow Bitcoin a better ability to scale.

Another factor that could further support the digital currency is a new Bitcoin exchange traded fund in the USA that might soon get the approval of the Securities and Exchange Commission. A Bitcoin exchange traded fund would provide a better access for investors and traders to the virtual currency, which will offer it new opportunities.

BTC/USD traded at 725.5 as of 17:11 GMT after touching today’s low at 720.0 at 07:30 GMT. BTC/USD started November at 695.4 before quickly moving on Tuesday to as high as 734.5 by 13:00 GMT.

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

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