The digital currency Bitcoin extended its record rallying in the first trading session of 2017 on Monday, to hit its highest level since NOVEMBER 2013 amid bullish momentum, surpassing all central-bank-issued currencies with a 125 percent climb in value in 2016.
Bitcoin was trading as high as $1,027.18 on the New York-based itBit exchange, to fall back to $1,025, up around 2.7 percent intraday.
Bitcoin is a web-based “cryptocurrency” that has no central authority, relying instead on thousands of computers across the world that validate transactions anonymously and add new bitcoins to the system.
Other big exchanges such as Bitfinex, Kraken and BitStamp also showed the cryptocurrency surging above the $1,020 earl Monday.
It traded as high as $999 yesterday and fell back to $960 to build momentum today and break $1000.
Market watchers think that the surging value may have been boosted in the last year by increased demand in China as the Yuan had a 7 percent fall, its weakest annual performance in more than 20 years. Data showed that most trading of Bitcoin is in China.
Bitcoin may also attract buyers from India upon worried about shortage of cash and India’s prime minister, removed high denomination banknotes from circulation in November.
The digital currency has been highly volatile; it hit a ten-time hike in its value in two months late 2013 to trade above $1,100, before a hack on the Tokyo-based Mt. Gox exchange, it dipped to under $400 in the following weeks.
Although, Bitcoin is still short of all time high of $1,216 reached on the BitStamp exchange in late 2013, analysts say we may see the digital currency breaking the record this year.