BTCUSD Bitcoin Prices Rally Bitcoin exchanges in mainland China, where the large majority of transaction volumes take place, suggest bullish sentiment has returned to the market following a period of regulatory uncertainty. After launching an investigation into major bitcoin exchanges, the People’s Bank of China (PBOC) has banned leveraged cryptocurrency trading in an attempt to stem volatility and restrict virtual outflows. According to experts, there is a perception among investors the PBOC will take no further action at this time.
China’s yuan renminbi fell almost 7% against the dollar last year, compelling investors on the mainland to cut ties to the slumping currency. Many of these investors diversified into bitcoin, which is seen both as a hedge against instability and a powerful alternative investment.
Bitcoin gained 125% against the U.S. dollar in 2016, giving it the distinction of best-performing currency of the year.
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