Want... Bitcoin's price is likely to fall as Greece had reached an agreement with European leaders for a possible bailout as well as the upward movement on the Chinese stock market, reports Chinese-language Beijing Business Today.
Bitcoin's price has been surging over the past few months, with peak value surpassing 30% the latest four trading days. The unit price had risen to 2,222 yuan (US$358) from 1700 yuan (US$274) since July 10. The transaction volume has hit 400 million yuan (US$64.5 million) on average per day.
According to Tu Jun, co-founder of China's bitcoin spot trading platform Huobi, there were several times since mid-June that Bitcoin's price fluctuated more than before. On June 16, Bitcoin's price jumped by 8% as the Chinese stock market started its plunge. Bitcoin's price continuously rose by 4% on June 30 when the Greek government announced its debt crisis. On July 6, the currency surged 5.5% when the Greeks declined the bailout proposal raised by its international debtors and the price surged 6.3% on July 10 when the possibility of Greece's exit of Eurozone increased.
A senior researcher at the Beijing-based Universal Gold, Xiao Lei, said the movement of Bitcoin's price usually connects with that of the stock market, the bulk commodity market and regional political situations. It may be the reason behind the recent rise in bitcoin, Xiao said.
Due to the stock market starting to climb and the improvement of the situation in Greece, bitcoin prices are likely to fall in the short-term with a continuous capital outflow on the Bitcoin market, Lei added.
Bitcoin's price dropped by 10% on July 13 as Greece reached a new agreement with EU members, closing at a unit price of 1,782 yuan (US$287).