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Crash of Chinese stock market raises price of Bitcoin

Bitcoin rose to an almost three-month high amid falling of Chinese stock indices.

The price of Bitcoin has risen to $789.23 on the leading Chinese cryptocurrency exchange OKCoin. According to FT, this is due to the fall of Shanghai Composite (-0.7%) and Shenzhen Composite (-0.6%) indices.

This is how the stock market has reacted to the restrictions imposed on insurance companies’ investments in the Chinese securities.

Another reason for the Bitcoin rate increase is the depreciation of renminbi. Earlier, the Wall Street Journal payed attention to the fact that due to the continued depreciation of Chinese currency, local investors were looking for more stable assets and investing in Bitcoin.

It should be reminded that other sources associate Bitcoin rate increase with events in Venezuela, where it was decided to withdraw its largest banknote from circulation.

According to President Nicolas Maduro, the decision will come into effect within 72 hours. Thus, Venezuela citizens will have ten days to exchange old 100 bolivars banknotes for new coins and high-value banknotes. Earlier, authorities announced the introduction of 5,000 bolivars banknotes.

Source: forklog

  • December 14, 2016 4:57 PM MSK