Bitcoin price approaches 6,000 yuan mark for the first time in three years

On December 22, Beijing time, the price of Bitcoin on major trading platforms soared, and several major domestic exchanges including OKCoin, Huobi, and BTCCC all hit a three-year high. At around 8:50 am, the price of BTC on most domestic exchanges was close to 5,998 yuan, and some exchanges broke through 6,000 yuan, with the highest price rising to 6,277 yuan. Foreign exchanges, represented by Coinbase, followed behind, with the highest price rising to 840 US dollars (about 5,833 yuan).

Economic and political turmoil

It has been exactly three years since the price of Bitcoin last broke through the 6,000 yuan mark, and analysts and experts have given various explanations for this rise.

Charles Hayter, CEO and founder of digital currency website CryptoCompare, said in an interview with foreign media:

“It is difficult to pinpoint the reasons behind this price rally. There are many factors at play, including global economic and political turmoil, such as the election of Donald Trump as U.S. president, and the emergence of Bitcoin as a digital hedge and safe haven in the eurozone.”

Capital controls, continued depreciation of the RMB

Hayter’s views were echoed by other experts and investors, including Digital Currency Group CEO Barry Silbert and BTCC COO Samson Mow, who both suggested that the continued depreciation of the Chinese yuan and the tightening of government capital controls were important factors driving the price of Bitcoin higher.

Barry Silbert: The Magic of Correlation

Mow also pointed out that in the Chinese trading market, the price of Bitcoin exceeded $800 a week ago, and the Chinese market controls about 93% of the global Bitcoin trading volume. As of press time, the average price of Bitcoin on Chinese trading platforms has reached $860, which indicates that the demand for Bitcoin in China is rising.

As Silbert noted on social media, the continued depreciation of the yuan and the government's tightening of capital controls are spurring mainstream Chinese investors to turn to Bitcoin.