The Bitcoin price has overcome the level of $450 and reached a top of $460 recently. Bitcoin is growing the second day in a row. But what caused this growth? As it began yesterday the indices halted trading on the stock exchanges of Shanghai and Shenzhen. This is not the first time when a sharp decline in the value of shares has stopped trading on the stock markets in China. The reason was a substantial decline in exports, which entails a decrease in the index of Shanghai Composite, which since mid-June 2015 has lost 35%. Despite the measures taken by the Chinese authorities to influence the state of the economy, the government could not achieve the desired effect. To keep the situation under control Chinese authorities spend foreign exchange reserves, which are reduced by $100 billion per month. As a result of the devaluation of the Yuan, it leads to the outflow of capital from the country. Following the fall in share prices on Chinese stock exchanges, there began a sharp decline in European and American stock exchanges. It is possible that the fall in the stock exchanges of China has caused a sharp increase in Bitcoin price now, which is namely seen during the Asian session.
We also asked some experts what could be the reasons for a sharp rise in Bitcoin on January 7,2016 and received the following answers:
Vishal Gupta is the Founder of Bitcoin Alliance India, CEO at SearchTrade, and Director at Moving Trumpet:
“Speculative buying on Chinese market crash news. Must understand btc price discovery is not based on consumption based demand supply. It is purely speculative demand suppl.”
Simon Dixon, CEO BnkToTheFuture.com and Fund Manager Bitcoin Capital :
"The spike in Bitcoin price is most likely investors that were busy for Christmas making some New Years resolutions to invest in the highest performing currency of 2015. I am expecting to see further spikes followed by smaller retracemeets throughout 2016. Bitcoin does not need news announcements to spike anymore as it has it's own constant flow of new genuine value investors that see Bitcoin as undervalued as do I."
Today, Bitcoin will tries to reach a level of $460. The level of support is $440. Resistance level is $470.
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.