There are four reasons why Bitcoin price hit a three-year high

Source: China Economic Times

Recently, the price of Bitcoin, a representative of virtual digital currency, has continued to rise, attracting market attention.

According to the OKCoin market data, the price of Bitcoin has hit a three-year high recently, and the trading volume has also increased recently. In an interview with a reporter from China Economic Times, an analyst at OKCoin said that there are four main reasons for the high price of Bitcoin.

First, the real estate market regulation forced investors to turn to Bitcoin. In 2016, various regions successively launched the "tightest real estate market regulation measures in history". The cooling of housing prices will drive investors to seek returns elsewhere. Domestic investors are facing the dilemma of a shortage of investment channels. Residents who were originally still waiting to see the real estate investment policies, faced with frequent tightening investment policies, began to look for new investment channels, and the decentralized digital currency Bitcoin has become a new investment highlight. Especially for the general public, how to choose an investment plan that suits them among the existing investment channels and products in China to achieve asset preservation and appreciation is particularly important.

Second, the stock market is volatile and risk aversion is rising. Not only the property market, but also the mainstream investment channel "stock market" is sluggish. Coinciding with the investment pressure, digital currency has gradually been included as a component of asset disposal. Emerging investment channels such as Bitcoin have become the target of funds flowing out of the property market and the stock market. And on June 24, the UK announced the referendum decision to leave the EU. On that day, the price of Bitcoin against the RMB rose by 19%.

Third, precious metals are volatile and falling, and Bitcoin has benefited. Recently, gold and spot silver have been fluctuating and falling for a long time. In order to ensure the preservation and appreciation of their assets, some investors choose to allocate their assets to multiple parties, so some assets have also flowed into the cryptocurrency circle.

Fourth, the RMB exchange rate has fallen. Some analysts believe that the falling RMB exchange rate may be one of the reasons for the recent surge in Bitcoin prices.

It is understood that Bitcoin, as a blockchain technology, is well-known in the investment circle for its decentralized characteristics. At first, it was just an investment channel in a niche field. In recent years, with the maturity of blockchain technology, the global acceptance of Bitcoin has reached a peak.

OKCoin's market analyst told our reporter that there is still a possibility that Bitcoin prices will continue to rise strongly in the future.