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The first bitcoin leap in 2016 comes absolutely unexpected for most bitcoin media. This surge can be explained by the recent developments in Chinese economy.

After two weeks of floating around $430, the price of bitcoin suddenly rose on the morning of 7 January, returning to the level of $450 where it was before Christmas. No bitcoin news outlet has foreseen this change. In fact, recent articles by NewsBTC and Brave New Coin predicted either a consolidation of bitcoin around $430 or a further decrease.

The price of the digital currency started to grow at 2 a.m. GMT, reaching $440 an hour later and $450 by 8 a.m. It is possible that this sudden growth is the result of the trade outcome on the Chinese stock exchanges from this morning. Less than half an hour after opening, they were closed as the CSI 300 Index lost more than 7 percent. The reason was the decision of the Chinese authorities to gradually devaluate the yuan against other major currencies. 

After oscillating between $200 and $300 for most of 2015, bitcoin started to grow in late October, reaching $460 in mid-December. After Christmas, the price went down to around $430 where it stayed until this morning.

 

Alexey Tereshchenko