2016 has barely finished and already the new year has started to bring good news. In its first day of trading in 2017, Bitcoin has broken the $1000 barrier. The benchmark was preceded by a small period of slow trading (which saw the currency fall to $960). However it rebounded not long after. It is currently trading around at $1012 per Bitcoin.
This marks the first time that the cryptocurrency has reached the landmark after it last surpassed it almost three years ago, in January 2014, when it topped out at $1023. Judging by the recent trends, it won’t be long before Bitcoin breaks its highest ever trading level of $1216.7, which was set back in 2013.
Bitcoin currently has a market capitalization of $16 billion. On the other hand, new trading volume records are also being made, with the US market recording trading at worth $163 million, with Chinese exchanges thought to be more than ten times worth the US level. In this market, Bitcoin is trading even higher at around $1050, as of latest.
It is not a surprise then that the recent surge in Bitcoin’s value is in part triggered by the demand in China, where people are looking for alternatives in the face of a devalued yuan, as well as more independent areas of investment with less intervention. Apart from these, unrest in key geographical locations, a new wave of populist movements, and falling gold prices can also be linked to Bitcoin’s rise.
By reaching the psychological level of $1000, Bitcoin has once again proved it isn’t affected by what critics think of it. If analysts’ predictions are anything to go by, the bullish trend carried over from 2016 will continue well into this year too.