Bitcoin Newsroom Articles
Bitcoin triumphantly rises once more, reaching an all-
Proclaimed dead or worthless so often by so many, the currency has been turning heads
in the past few weeks when a two years long bull market accelerated around December
the 20th, increasing bitcoin’s price from around $800 to almost $1,100 in just two
weeks, while at BTCChina it reached an all-
Bitcoin Reaches an All Time High of 7,990 CNY at BTC China
OkCoin and Huobi, the current leading exchanges with daily trading volumes in the
millions also nearly reached all-
What is driving this stratospheric rise no one can say for certain. ZeroHedge seems to believe that it is mainly in response to capital control measures in China which has devalued its currency to its lowest level in years. Among one of the arguments to support their conclusion is the volume of Chinese exchanges, but another explanation for their far higher volume levels may be that Chinese exchanges have no trading fees and are the only ones to provide significant margins, thus making them the exchanges of choice for traders and speculators worldwide.
However, trading volumes have significantly increased recently across the board,
leading ZeroHedge to constantly warn that the Chinese may institute a crackdown on
bitcoin to better enforce capital controls. Such measures would significantly affect
China’s image in the west which has enjoyed considerable good press in this space.
Moreover, it would probably jeopardize their attempts to promote blockchain innovation
and attract more talent, something they appear to take seriously as shown by the
inclusion of blockchain technology on their five-
The fear of Chinese capital controls is speculatively driving investors to bitcoin.
Although there are rumors that China is looking to take restrictive measures, it is doubtful they would work or that the benefits of such measures would be more than the direct cost to the significant mining industry or more indirect cost of the country creating an image of unfriendliness to blockchain innovation.
It is more likely that China has now learned from the significant strategic advantage the foresight of UK’s government gave to Britain when in 2014 they embraced Fintech symbolically shown by the then Chancellor buying a bitcoin.
Nonetheless, bitcoin remains volatile and has many risks in investing or trading. China might indeed, despite good sense, enact highly restrictive measures just as the continued amateurism of some exchanges might bring the party to an end.
Disclaimer: All of the above is pure speculation with none of it constituting any advice. I am not a financial expert and you rely on any of the above solely at your risk and discretion. Price goes up and down, therefore you may gain or lose your investment.