Earlier this week, Livebitcoinnews reported that speculations within the Chinese market resulted from the potential devaluation of the yuan pushed the demand for Bitcoin, increasing the price to around US$610. As the price of Bitcoin nears the US$630 margin, it seems as if the digital currency has been substantially undervalued in the Chinese market.
Almost immediately after the coverage of Livebitcoinnews, major financial outlets began to look into the impact of the yuan devaluation on Bitcoin. Experts believed that if it is increasing the demand for Bitcoin in China, once the devaluation takes place, it will lead to another major spike particularly in the Chinese market.
If the momentum of this rally continues, the price of Bitcoin that has been undervalued for a long period of time will break out to new highs in 2016, creating a surge in demand and value for the currency.
Over the past few months, leading mining companies and bitcoin startups have continuously suggested that the value of Bitcoin has been significantly undervalued for a long period of time. Samson Mow, COO at YourBTCC, has been very expressive of his belief that Bitcoin will most likely experience a major price spike within this year, due to the development of various positive technologies, increase in demand for Bitcoin, and the decline of private blockchains.
Back in June, prior to the halving block reward, Mow stated that the stability of the Bitcoin price suggested that the demand will be much higher than the supply once the halving occurs. However, the occurrence of the block reward halving was anticipated for such an extended period that it didn’t pose an immediate impact to the value of Bitcoin.
As a series of positive development and announcements broke out in the industry, over time, the Bitcoin price steadily moved forward, breaking the US$600 margin that it struggled to surpass and reaching to a two month high trading margin of US$628.
The consistent development of Bitcoin technologies and surge in demand in the Chinese market will continuously push the price further, potentially past US$650.