Bitcoin price struck a high of $1025 on the Bitstamp Price Index (BPI), ringing in the new year with numbers unseen since January 2014.
Price flirted with the $1000 milestone throughout most of yesterday, before scaling the figure at 20:40 UTC. The price of bitcoin had already scaled $1000 on the first day of 2017
Although the day began with bitcoin trading to the dollar at $998.65, bitcoin price pulled back above the psychological and significant milestone in the early hours of the day. At 02:45, price registered at $1001.19 and the value of bitcoin has been making gains ever since.
At 09:00, the BPI saw bitcoin reach $1006.32 before an increased period of trading saw price surge to $1021.88 an hour later. Eventually, price scaled a high of $1025 at midday.
At the time of publishing, a bitcoin is trading near the day’s high, at $1024.99.
Bitcoin made rampant gains toward the end of 2016 to ultimately reach well beyond doubling its value during the year.
Bitcoin trading volumes by currency points to a significant volume in bitcoins purchased in China. Over 5 million bitcoins were traded in a 24-hour period since the turn of the year, with nearly 38 billion yen traded (approx. $3.2 billion), according to figures from Cryptocompare.
Chinese investors are further fueling demand for bitcoin in the face of new regulations by the Chinese government following the annual January 1 reset of the annual $50,000 forex purchase quota. The yuan has suffered its biggest annual slump in over two decades as confidence in the fiat currency continually wanes following the result of the US presidential elections.
According to Bloomberg, the yuan finished 2016 with a near eight-year low as middle-class and wealthy Chinese continue to convert money into other safe assets and currencies, with bitcoin a notable example of playing the role as an asset. While China grapples with the outflow of capital, new regulations that have stoked fears of capital controls have been refuted by central bank officials.
Trading figures at China’s biggest bitcoin exchange, BTCChina, shows price reaching a peak of 7375 yuan, approx. $1061.23.
For a live Bitcoin Price chart, click here.
For yesterday’s bitcoin price analysis piece from CCN analyst Jim Fredrickson, click here.
All time references are in Coordinated Universal Time (UTC).
Image from Shutterstock. Charts from Bitcoin Wisdom and CryptoCompare.