Bitcoin price surges in the short term, driven by expectations of RMB depreciation

Bitcoin, whose price had remained stable over the past month, saw a short-term surge in price as a massive influx of market funds.

During the trading session on the 4th, driven by huge buying demand, the price of Bitcoin once rose to 4,135 yuan on the Bitcoin trading platform Huobi.com. After a month, Bitcoin returned to the 4,000 yuan mark. The day before, the price of Bitcoin on the platform was still around 3,840 yuan, with a 24- hour increase of nearly 7% . Today, the price of Bitcoin has adjusted slightly. According to the Bitcoin news website LiveBitcoinNews.com ,

Many research institutions and financial companies believe that the expectation of RMB depreciation is the most important reason driving Chinese buyers to buy Bitcoin in large quantities.

However, Huobi COO Zhu Jiawei said that since the halving of Bitcoin production and the Bitfinex incident, there has been no major news in the industry recently. Since the price of Bitcoin fell due to unfavorable news a month ago, it has been sideways for a long time. Technically speaking, the price of Bitcoin has reached the pressure point that needs to be broken.

Some analysts also said that the price of Bitcoin breaking through the 4,000 yuan mark is related to the fact that financial institutions have successively studied blockchain technology. Blockchain is the underlying technology of the digital currency Bitcoin. In fact, blockchain is a huge database running on a global independent computer network. For Bitcoin, blockchain technology can track currency transactions. But this technology can also track transactions of anything of value, including stocks, bonds or other financial securities. Visa, an international credit card organization , recently announced that it will apply blockchain technology to interbank settlement and payment. Xiao Lei, chief researcher of Golden Wallet, said that Bitcoin is currently in the stage of being driven by the linkage concept under the attention of global financial institutions to blockchain technology.

Huobi founder Li Lin also said in a letter to the Bitcoin blockchain industry that blockchain received great attention from the government, capital and media in 2016. All of a sudden, blockchain-related companies and organizations emerged like mushrooms after rain. Huobi stood at the forefront of this trend.

Whether the creation of Bitcoin is a great Internet financial experiment or a Ponzi scheme led by geeks, Bitcoin has become the most watched Internet virtual currency in the world. As for the future trend of Bitcoin, some fans who support Bitcoin believe that there are several reasons to support the rise of Bitcoin prices: the supply of Bitcoin is limited; now that central banks of various countries firmly believe in the loose policy route, the assets of various countries will continue to depreciate, and Bitcoin will become the object of favor of other investors; capital controls to control capital outflows may increase the number of Bitcoin users to a certain extent.