Bitcoin surges in volume! Price hits three-month high

Source: Wall Street Journal

After experiencing a sharp drop in early September, Bitcoin has once again attracted market attention with its recent surge in volume.

According to Bitcoinity data, the price of Bitcoin hit $656 during today's trading session, a three-month high. On October 23, the trading volume of Bitcoin increased to nearly 5.5 million, a seven-month high.

Zhu Jiawei, chief financial officer of Huobi, one of China's largest bitcoin trading platforms, believes that the current surge in bitcoin prices is closely related to the depreciation of the renminbi. He told 21st Century Business Herald that the exchange rate is a long-term and underlying factor in bitcoin prices. Under the pressure of renminbi depreciation, investors will consider allocating some hedging and safe-haven assets.

Since October, the RMB central parity rate has repeatedly hit new lows. Last Friday, the RMB central parity rate fell below 6.75, setting a new low in more than six years. Today, the RMB central parity rate is approaching 6.77, once again setting a new low in more than six years.

Corresponding to this is the recent surge in Bitcoin. Data from the OKCoin trading platform shows that the price of Bitcoin has soared since the 22nd, from 4,336 yuan to 4,578 yuan, directly breaking through the 4,500 yuan mark and rising to the highest point in nearly three months. Currently, the price of Bitcoin on the platform is about 4,482 yuan, which is about 2% higher than the US dollar price.

Arthur Hayes, co-founder and CEO of Bitcoin leveraged trading platform BitMEX, held a similar view. He told Bloomberg News that he expects the premium to expand further and that if the renminbi continues to fall, the price of Bitcoin could soar to $1,000 in January next year.

In May and June this year, the price of Bitcoin also saw a round of surge. From May 27 to 29, the price of Bitcoin once rose by more than 25%. In mid-June, affected by the prospect of Brexit, its price once exceeded $700, reaching its highest level since February 2014.