Cryptocurrencies

Bitcoin Hits 2-Year High Amid July’s Supply Shrink Forecast

Bitcoin has hit a two-year high, making its way past the $680 mark on Monday and hitting $689.87 with 15.65 million bitcoins in circulation. This is its highest since September 2014, when the cryptocurrency went on a free-fall from more than $1,000 per single bitcoin.

Concerned about their country’s economy resulting in the depression of the Yuan, the Chinese are still the main factor behind the unrelenting surge in the bitcoin price. According to CoinDesk; the world leader in news and digital currency, the increased investment among Chinese traders is believed to account for 95% of the current bitcoin trading volume.

The scheduled shrink in digital currency supply is another reason behind the spike. Chinese exchanges Huobi and OKCoin expect that in July, profits from mining bitcoins will be reduced due to a process called “halving”, which limits the total amount of bitcoins that could be created.

Created by Satoshi Nakamoto, the rules in bitcoin’s code dictate that 21 million coins will be released throughout the digital currency’s lifecycle, which is, in a way, aimed at counteracting the endless printing of paper currencies.

To this date, a total of 15.5 million bitcoins have already been created, and it can be safely assumed that, given the hype that digital currency is getting right now thanks to the increased attention from venture capitalists and banks on block-chain technology, there’s no way but up for the price of bitcoin.

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