Bitcoin successfully broke through 6,000, with an annual increase of more than 160%, and most of them are long-term holders

According to the market data of OKCoin (www.okcoin.cn), a Chinese bitcoin trading platform, on December 22, 2016, bitcoin started to rise from 5,600 yuan at 6 am yesterday, with the highest price of the day being 5,875. Today, bitcoin opened at 5,864.14 yuan, and continued to rise in the afternoon, successfully breaking through the 6,000 yuan mark, reaching a maximum of 6,150 yuan, an increase of 163% compared to the lowest price of 2,335 yuan in January this year.

OKCoin Network Data

Bitcoin continues to rise due to multiple factors

OKCoin's analysis of the rise in Bitcoin prices says:

First, investors' risk aversion is heating up. Since Chinese investors have limited investment channels, how to find a way to preserve the value of assets has become a major problem. Chinese investors are actively seeking alternative investment methods. Like other investment methods, Bitcoin trading provides Chinese investors with an investment option to achieve asset diversification.

Second, the demand for Bitcoin in the international market has increased. Since June this year, the economic turmoil in Venezuela has caused a large number of entrepreneurs to turn to Bitcoin mining. According to foreign media reports, the price of Bitcoin in Venezuela has risen to nearly one thousand US dollars.

Third, as the distributed ledger technology behind Bitcoin, the blockchain craze seems to be unstoppable. As blockchain technology has received widespread attention from the society (including traditional financial industry, government regulatory agencies, technology companies, etc.), Bitcoin has become known to more people.

In addition, OKCoin analysts also added that the situation of investors buying Bitcoin has also changed greatly. OKCoin analysts said: Domestic investors are more rational in buying Bitcoin. Investors have changed their purchase of Bitcoin from speculative behavior to investment behavior, and most investors hold Bitcoin for a long time.

According to MarketWatch, on December 21, "European and American buyers accounted for the majority of Bitcoin trading volume." So the reason why Bitcoin broke through $800 may be partly because people turned to Bitcoin in response to the Italian banking crisis.

As previously reported, Pakistan’s parliament proposed abolishing the highest denomination banknotes, and subsequently, domestic Bitcoin trading volume increased近400% .

In summary, although the current price shows a fairly strong state, we should be aware that it is normal for there to be a pullback in the middle. The current amplitude has obviously increased, and the relative pullback space will also increase, so investors are advised to remain cautious.