Bitcoin approaches new record high – theo trade

I said Bitcoin could get over $1,000 in January because of the intense momentum it has. Bitcoin price blockchain The parabolic momentum has cascaded the price to near its record high. Bitcoin charts The current price is $1,103 and the all-time high was $1,242 set on November 29 th, 2013. Bitcoin rate graph At one point today it was up about 18% year to date.

Define bitcoin Bitcoin had been the best performing currency in each of the past two years, but the rally is now accelerating to a pace which is unmanageable. Bitcoin exchange singapore This is the climax of multi-year rally which will soon end in a large correction. What is bitcoin video Whenever the price of an asset rises this quickly there will be temptation to sell and take profits. Bitcoin exchange sites If you bought bitcoin at $400 12 months ago, you have almost tripled your money. Value of bitcoin graph Even if you do believe like I do that bitcoin will be much higher in the long term, it’s still scary to hold on at this breakneck speed. Bitcoin exchange south africa Eventually sellers will overwhelm buyers and greed will turn to fear. Bitcoin daily chart I expect the correction to take place after it sets a new record.

The main news event surrounding bitcoin is the price. Value of bitcoin This is better than a news item about a hacking event like Mount Gox or new regulations. Bitcoin price prediction The news of bitcoin’s rally is good because it encourages more people to do research on bitcoin. Bitcoin c The claim that bitcoin was a temporary bubble that would fade out of existence has now been proven to be a myth.

As you can see from the Google Trends data, the interest in bitcoin has almost doubled in the past three weeks. Bitcoin price after halving When bitcoin reaches an all-time high, it will get even more coverage which I believe will make its search engine rankings challenge the highs made in 2013. Bitcoin value trend Once that happens, I think the final burst in the price will occur as Americans try to profit off of the optimism. Price of bitcoin now The negative part of this story is that bitcoin’s price volatility encourages speculators to get involved instead of long-term users. Bitcoin location Speculators will lose interest if the price stops rising, so it doesn’t improve the fundamentals of bitcoin. Meaning of bitcoin It actually hurts the fundamentals because speculators are the source of the selling pressure that causes the volatility and makes potential ordinary users skeptical of adopting it.

The reason why I said bitcoin prices reaching new all-time highs could encourage American users to join the fray is because Chinese demand has been the main source of this rally. Bitcoin usd chart Because China doesn’t have Google, it explains why the bitcoin price is near a new record high without being near the record high on Google Trends.

China is the place where demand is coming from because of the capital outflows from the country. Bitcoin gbp chart China’s foreign exchange reserves fell 8% in the first 11 months of 2016 to $3.05 trillion. Bitcoin price index The yuan is at the lowest value versus the dollar since 2008. Exchange rate for bitcoin The reason bitcoin is the recipient of the capital outflows from China is because it is the best way to bypass capital controls in China. Bitcoin prize Capital controls have a Streisand effect meaning they encourage the outflows they are trying to stop. Best uk bitcoin exchange Capital controls are a signal that the economy is unsound. Bitcoin price yesterday If the economy was healthy, there would be no need for them. Bitcoin live exchange Bitcoin is the current way to get around them, but eventually the PBOC will attempt to stop this end around. Bitcoin price news That could leave China in a worse place then it started in because access to bitcoin will be removed. Bitcoin site Hopefully, the Chinese will understand the potential of bitcoin in the midst of their speculative craze, but I don’t have highs hopes for that.

According to Cryptocompare, in the first 24 hours of the new year over 5 million bitcoins were bought in Chinese yuan which equals $3.8 billion. Price of bitcoin today In the same time period 53,000 bitcoins were bought in America. Value of bitcoin in usd While this may have been a particularly weak time for American purchases because it was a holiday, the percentage of Chinese buyers has consistently been high signaling it is the main driver of the recent price appreciation. Bitcoin rate The chart below shows the past 24 hours of volume from the top 14 currencies buying bitcoin. We love bitcoin China makes up over 97% of the trading volume which isn’t sustainable. Bitcoin value 2016 The fact that economic issues in one country can cause that country to dominate bitcoin trading shows the small size of bitcoin.

Hopefully the PBOC won’t be able to fully crack down on Chinese demand for bitcoin. What is bitcoin value However, even if they don’t, I expect this speculative bubble to eventually burst just like all bubbles do. Bitcoin conversion The chart below shows the recent history of Chinese speculative bubbles. Bitcoin stock history The Chinese people tend to take high risk and the Chinese government, being communist, acts to stamp out various bubbles. Bitcoin exchange europe A lack of free markets and speculative behavior is a recipe for disastrous bubble formation. Bitcoin value eur I consider these bubbles to be disasters because they hurt end users. Bitcoin price spike They hurt users of the commodities when the price gets too high. How to pay in bitcoin They hurt Chinese people who want to buy a house because property values get too expensive. Bitcoin what is it They will hurt bitcoin when the price falls and ignorant people blame the blockchain technology for the fall. Bitcoin value canada Bitcoin has been deemed dead many times. Bitcoin exchange in pakistan A price crash would be fodder for more of these ‘bitcoin is dead’ stories.

Looking at the macro picture, the yuan is experiencing outflows because of the strong dollar which is strengthening because of interest rate hikes. Bitcoin 5 year chart Therefore, bitcoin goes up when the Fed raises rates. Bitcoin cost chart This is the exact opposite of what happens to gold. Bitcoin price coinbase This would mean owning gold and bitcoin could be a great way to hedge against interest rate changes. Bitcoin news australia I am expecting the Fed not to raise rates as the Trump inflation increases don’t meet expectations. Bitcoin companies This would make me bearish on bitcoin prices in the short-term. Bitcoin char In the long-term, I remain bullish on bitcoin as a store of value because the currency is unlikely to ever have the number of bitcoins outstanding rise above 21 million.

The price of bitcoin is increasing because of Chinese demand as it is a great outlet for capital trying to escape the yuan’s devaluation. What is bitcoin payment This isn’t a sustainable rally. Bitcoin value However, I don’t expect the correction to knock the price down below the prior low as the long-term trend towards bitcoin adoption remains in-tact. We accept bitcoin Any long-term holder will step into the market and buy bitcoin if the price falls near the $500 level. 1 bitcoin is worth That’s where I plan to take advantage of the decline if it happens.