Bitcoin prices exceeded $700 Chinese buyers lastingachievements

Bitcoin prices exceeded $700 Chinese buyers lastingachievements
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When the global stock market by the British back in Europe and the Fed rate hike expectations spoiler, bitcoin at this time again to steal the spotlight”.

In June 13th, bitcoin breached $700, hitting $710 for the first time since early 2014.

Bitcoin from September last year rose more than 250%, the market analysis, the driving force behind this virtual currency is the main buyers from China, Chinese savings amounted to US $22 trillion.


On Sunday, the domestic trading platform bitcoin trading network (btctrade.com) price of 150 yuan higher than the overseas bitcoin, which also shows strong demand for China buyers bitcoin. Domestic trading platform trading volume accounted for more than 90% of the world.

“The recent bitcoin prices is caused by many reasons, bitcoin will usher in the first production by half, before breaking the balance between supply and demand; in addition, China market demand rise, other investment channels led to the recent downturn, the domestic bitcoin trading volume increased significantly.” Bitcoin trading network founder Zhang Shousong think so.

There are foreign media analysis, the recent bitcoin prices soaring mainly for the following reasons:

The Fed is expected to raise interest rates

From the beginning of this year, the Fed has released a strong signal of interest rate in summer. Fed chairman Janet Yellen (JanetL.Yellen) the attitude from the pigeon to the eagle, and at the same time, the Federal Open Market Committee (FOMC) several members of the public also expressed support for the interest rate, including the FOMC ticket commission, Saint Louis Fed President James – Brad (JamesBullard).

In the past few months, so all kinds of value functions to support the dollar interest rate statement further enhanced as a virtual currency bitcoin. However, payrolls data released by the U.S. government last week compared to the expected dismal performance, the industry believes that the possibility of raising interest rates in June is very slim. Advantageously, the economic performance is not satisfactory, the policy may be more cautious than ever, so that bitcoin is a kind of high income and high risk assets, the development trend is still relatively optimistic.

The next two days, the Federal Reserve will hold meeting announced interest rate decision, the decision will have a direct impact on the recent trend of bitcoin.

The devaluation of the renminbi

Due to the recent depreciation of the RMB, the stock market, gold investment channels in the doldrums, more and more domestic investors to invest bitcoin camp, this is the main reason for bitcoin prices in May. In addition, the economic data of domestic industrial production, fixed asset investment and retail industry and other industries also contributed to the recent weakness in the domestic market bitcoin investment enthusiasm.

The British and European referendum approaching

With 23 this month, the British off the European referendum approaching, the market becomes more turbulent. According to the latest poll, 55% of respondents supported the British withdraw from the EU, increased by 10% than before. With the removal of European camp gradually prevail, the euro and the pound continued to slump, European stock markets fell across Europe, the overall market sentiment is pessimistic. Faced with this situation, global investors tend to sell currencies now hold, to seek other investment, bitcoin has become one of the focus on the purchase of objects.

In addition to the above reasons, bitcoin supply constraints (“four years of supply by half”) will lead to investment demand further warming. In addition, widely recognized and lightning network block chain technology (LightningNetwork) technology development also strengthened the confidence of the market. According to industry forecasts, the rise of bitcoin is still large, the estimated limit between $900 and $-1000.

At present, bitcoin acceptance in the global scope is increasing. The Commodity Futures Trading Commission (CFTC) for the identification of bitcoin commodities, the United States now have more than 20 states have issued licences for bitcoin trading platform, which means that its recognition of the legitimacy of bitcoin commodity and financial settlement, also acknowledged the legitimacy of the trading platform. Japan put forward the operation specification promulgated bitcoin. In March this year, the EU Member States to Luxemburg bitcoin trading platform issued a trading license. But at the beginning of this year, the central bank governor Zhou Xiaochuan Chinese personally participated in the seminar of electronic money development trend, although the conversation disclose and fully understand the digital currency, but digital currency bitcoin and the underlying technology blockchain public support in the seminar on research. And in 2013 the ban is completely different.

Therefore, from the perspective of macro and micro environment, digital currency will be of great development, but also the future trend of monetary settlement means, no one can stop. As the originator of the digital currency bitcoin in any case will not go bad. Bitcoin comeback does have speculation factors, it is more important to see is the deep reason of the macro trend.

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