A sudden and dramatic spike in the Bitcoin price has pundits everywhere hunting for an explanation.
While the price of Bitcoin had fared well over the past 12 months, more than doubling from the lows of last August, the latest surge pushed the digital currency to a two-year high.
Once the Bitcoin price broke through resistance at $460, a level that had served as a barrier over and over since December, it raced to $500 and beyond.
A week ago, the Bitcoin price was about $445. Starting on Friday, the price of Bitcoin began to move up. It breached $500 on Saturday and $540 on Sunday. The Bitcoin price has leveled off and pulled back a little since, but today (Tuesday) is hovering around $530.
At the peak of the run, the price of Bitcoin had soared more than 20% in just three days.
But such a steep move must have cause. And it's something we've seen in the past…
Why the Bitcoin Price Is Soaring
Bitcoin buying in China suddenly increased in recent days. And make no mistake, China dominates world Bitcoin trading.
Many people don't realize China's importance to the Bitcoin ecosystem. Despite restrictions imposed in 2014, the Chinese government never banned Bitcoin outright. China-based Bitcoin miners account for about three-quarters of all Bitcoin miners.
Read more at: http://moneymorning.com/2016/05/31/why-these-bitcoin-price-moves-are-all-about-china/
By DAVID ZEILER, Contributing Writer, Money Morning •
Read more by MarketSlant Editor
