Bitcoin owners have had a successful start to 2017 as the valuation of the crypto currency surpassed $1,000.
Towards the end of 2016 the digital currency saw the price of one Bitcoin reach $875 on the European Bitstamp exchange, now it is valued at $1,012.74, at time of writing.
The value of bitcoin has shot up in recent months that in part to the devaluation of the Yuan by China and India’s removal of high valuation bank notes.
The valuation of over $1,000 marks the first time in three years it has gone past this point.
One of the biggest boosts to the currency’s value was the US election win by Donald Trump. The reason for this is that Bitcoin is seen as being a safe asset to turn to in the time of currency fluctuation.
With uncertainty across the markets in the wake of Brexit and Donald Trump’s win, many have moved to put money into Bitcoins.
The reason for this is that the price of Bitcoin is uncorrelated from other capital market assets.
However, the rise in the valuation may not last as it can, and has, fluctuated wildly in the past. On the 22nd June the price of Bitcoin crashed to $593 before recovering back to $707 by 2nd July. In August the price dropped to $535 in reaction to the Bitfinex hack.
The value of Bitcoin is yet to surpass the $1,100 mark that it hit in 2013 before the Bitcoin exchange Mt Gox was hacked.
Competition in the market from other crypto currencies such as Ethereum, Ripple, and Litecoin has helped to increase exposure to the world of digital currency, something which has begun to impact valuations.
