Bitcoin has gone crazy again, breaking through 8,600 to set a new all-time high!

In just a few days, the price of Bitcoin soared from 7,000 yuan to 8,600 yuan, an increase of more than 22.85%, successfully setting a historical high.

On the first trading day of 2017, the price of Bitcoin in global trading markets broke through $1,000, and in the following days, an even crazier scene began to unfold.

7500… 8000… 8500…

For two consecutive days, Bitcoin rose by more than 500 yuan in a single day, a scene that has not been seen for a long time.

What’s even more terrifying is that, as of press time, the price of Bitcoin on domestic trading platforms has generally exceeded 8,600 yuan, while on foreign exchanges such as Coinbase, Bitstamp, etc., the price is only around 7700 yuan, with a price difference of nearly 1,000 yuan between the domestic and foreign exchanges!

The biggest reason for this round of crazy growth is still in China! China's foreign exchange reserves shrank by about 8% in 2016, falling to $3.05 trillion in November. Since 2008, capital flight has caused the RMB exchange rate against the US dollar to reach its weakest level.

According to data obtained by Business Insider from Cryptocompare, "On the first day of the new year, more than 5 million bitcoins were traded in Chinese yuan, equivalent to $3.8 billion. In contrast, only 53,000 bitcoins were traded in U.S. dollars."

The situation is unlikely to improve anytime soon unless China takes action to stop the bleeding, while a rate hike by the Fed could trigger further weakness in the yuan, which would be very bullish for Bitcoin.