Foreign media: Bitcoin hits a one-month high! Pressure on capital outflow control remains

Caption: A man walks past a retail store in Hong Kong displaying a Bitcoin logo

According to foreign media reports, on February 7, Bitcoin rose 2% on Tuesday, the highest single-day increase since January 4, when China's foreign exchange speculative trading activities surged. Market observations and analysis showed that the reason was that populists in the United States and Europe posed a threat to the existing political order, thereby increasing the attractiveness of alternative investments such as digital virtual currencies.

Bitcoin hit $1,060 on Tuesday, its highest level since hitting $1,100 on Jan. 4, a more than three-year high, according to Coin Market Cap. Bitcoin more than doubled in value throughout 2016.

Bitcoin one-year chart

According to data from TradeBlock.com, the trading volume of Bitcoin exchanges in China, such as the Bitcoin trading website OKCoin, was 14,500 coins that day. Previously, the trading volume of Huobi, OKCoin and BTC China alone accounted for more than 80% of the global Bitcoin market.

The rise of the digital currency was followed by the important overnight news that China's foreign exchange reserves fell by $12.3 billion to $2.998 trillion, the first time the country fell below $3 trillion. From this, it can be seen that the pressure to control capital outflows in China still exists.

Brian Capital founder Kelly told the media that he is bullish on Bitcoin, and the US Stock Exchange has also updated an ETF that tracks Bitcoin prices. "China's foreign exchange transactions (outflows) will also begin to accelerate. "