Chinese buyers buy Bitcoin in large quantities, breaking through $800 for the first time in three years

Source: On Wednesday, US time, the price of Bitcoin hit a three-year high of $822. Guess who is the big pusher behind Bitcoin? The answer is: Chinese buyers! According to analysis, Chinese buyers have recently purchased large amounts of Bitcoin in order to hedge against the depreciation of the RMB.

Bitcoin is a globally used virtual currency. Bitcoin is not issued by a specific monetary institution. It is generated through a large number of calculations of a specific algorithm. The Bitcoin economy uses a distributed database composed of many nodes in the entire P2P network to confirm and record all transactions.

Data shows that the price of Bitcoin has been rising steadily this year. After the results of the US election came out, as the US dollar strengthened, Bitcoin's price soared. On Wednesday, the price of Bitcoin was as high as $822, a new high since January 2014. Analysts said this was an important milestone in the trend of Bitcoin. Although most transactions in the past 24 hours were in US dollars, euros and pounds, it is worth noting that Chinese investors are the main drivers of this round of Bitcoin surge.

According to market analysts, the reason why Chinese investors bought a large number of Bitcoins is mainly because they bought Bitcoins to seek safe havens as the US dollar strengthened and the RMB depreciated sharply. In addition, the uncertainty about the political form of the next US President Trump's administration and the upcoming European election season in 2017 are also important reasons for the global market to buy Bitcoins.

According to Forbes magazine's analysis, the Indian market also has an impact on pushing up the price of Bitcoin. India's recent "demonetization movement" has shocked the entire Indian market. India's wealthy people have been forced to buy large amounts of Bitcoin to cope with the sudden financial reforms.

All of the above influences have contributed to the continued bull market in Bitcoin this year.

According to Charles Hayter, founder and CEO of CryptoCompare, a professional virtual currency analysis company, the most important function of digital currency is to hedge against inflation and uncertainty.

(Bitcoin trend chart since 2014)