Bitcoin Jumps Back to $600 Price Range Amidst Yuan Devaluation Fears
It has been announced that Bitcoin has officially bounced back to the $600 price range; the highest price range that the digital currency has reached since the hack of Hong Kong-based bitcoin exchange Bitfinex in August.
During the hack, an estimated $65 million worth of bitcoin was stolen. Since then, the price of bitcoin has been hovering at about $570.
The digital currency’s sharp spike in price could have been influenced by several factors. For example, the renewed interest in cryptocurrency could have been caused by Bitfinex’s announcement that it has discovered a way for its customers to convert their BFX tokens. It could also be due to the fact that Russian authorities have finally admitted that a blanket ban on digital currency is “not worth implementing”, given that the technology is still evolving.
Another possible factor is the renewed fears of yuan devaluation among Chinese investors. The Chinese economy had a brief hopeful period in the days leading up to the G-20 summit. The optimism, however, was destroyed following the announcement by China and the US that they are refraining from competitive devaluations and not targeting exchange rates for competitive purposes.
This means that yuan will remain to drop in value against the US dollar, prompting numbers of investors to turn to digital currency to safeguard the value of their investments, acting as a safe haven asset, particularly at times like this.
Bitcoin’s price continued to rally at $604, with a market cap of nearly $9.71 billion and trade volume of $22.52 million.
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