World Economy

Bitcoin Prices Surge 3 Percent

Bitcoin Prices Surge 3 PercentBitcoin Prices Surge 3 Percent

Bitcoin’s latest price surge showed no signs of slowing, as investors continued to pour into crytocurrency at a time of heightened economic and geopolitical uncertainty. The BTC/USD exchange rate spiked 3.3% to $932.24, according to CoinDesk. It reached a high of $937.74 earlier in the day.

Bitcoin is trading at its highest level in three years, having gained more than 110% over the past 12 months. Prices are up more than 50% in the fourth quarter alone amid stronger demand from emerging markets, primarily China and India, EconomicCalendar reported.

The latest surge comes as India and Venezuela are boosting efforts to demonetize high-value currency notes. In India’s case, Prime Minister Narendra Modi is looking to stamp out corruption and so-called “black money” activity. In the case of Venezuela, President Nicolas Maduro is trying to keep pace with hyperinflation in an economy ravaged by recession, food shortages and social unrest. Both policies have seriously undermined investors’ confidence in fiat currency as a store of value. This makes bitcoin all the more appealing.

Bitcoin appears poised to reach $1,000 for the first time since late 2013, overcoming summer volatility that sent prices tumbling. While bitcoin’s short history has been marked by wild fluctuations, the currency has shown greater stability this year. The market for cryptocurrency is only expected to grow as Chinese investors continue to diversify away from yuan-denominated assets. The world’s second-largest economy has already emerged as a major player in the cryptocurrency space.


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