Bitcoin has officially crossed the $800 threshold for the first time in nearly three years, marking a significant psychological milestone for the world’s largest cryptocurrency. The digital asset surged past $800 around 11:40 PM GMT on December 21, 2016, trading at approximately $815 at press time — an 87% gain year-to-date.
TL;DR
- Bitcoin breaks $800 for the first time since February 2014
- 87% year-to-date gain makes BTC one of 2016’s best-performing assets
- Chinese yuan depreciation and Trump election drive safe-haven demand
- BTC market cap surpasses Twitter’s valuation
- Scaling improvements provide fundamental support for the rally
A Psychological Barrier Broken
Charles Hayter, CEO and founder of CryptoCompare, described the move as breaking a “definite psychological barrier.” The $800 level had served as a symbolic ceiling since Bitcoin’s dramatic decline from its 2013 highs, and breaching it signals renewed confidence in the cryptocurrency’s long-term trajectory.
Bitcoin traded as high as $822 during Wednesday’s session, according to MarketWatch data, with U.S. and European buyers accounting for the bulk of trading volume. The CoinMarketCap snapshot for December 21 shows Bitcoin at $834.28 with a market capitalization of approximately $13.4 billion — surpassing Twitter’s market valuation at the time.
Global Forces Drive Demand
The rally is being fueled by a convergence of macroeconomic and geopolitical factors. The election of Donald Trump in November 2016 sent shockwaves through traditional markets, with investors increasingly viewing Bitcoin as a hedge against uncertainty.
“The rally is difficult to pin down as there are a number of contributing factors that include the global economic and political shifts underway with Trump and the Eurozone,” Hayter told CNBC. “Bitcoin [is becoming] a digital hedge and flight to safety.”
Chinese trading has been another major catalyst. Trading volumes in China reached extraordinary levels in October and November, with 10 million bitcoins traded on peak days before subsiding to a steadier 3.5 million bitcoins per day in December. Chinese investors have been seeking refuge in Bitcoin as the yuan experienced rapid depreciation against a strengthening U.S. dollar.
Technical and Fundamental Tailwinds
Beyond macro factors, Bitcoin has benefited from meaningful technical progress. Positive developments around scaling — the effort to increase the number of transactions the network can process — have bolstered investor confidence in the cryptocurrency’s fundamental value proposition.
The broader cryptocurrency market has followed Bitcoin’s lead. Ethereum’s ether token traded at $7.91 with a market cap of approximately $690 million, while the total crypto market capitalization stood near $14.8 billion. Litecoin, Monero, and Ripple’s XRP rounded out the top five digital assets by market value.
Why This Matters
Bitcoin’s return to $800 is more than a price milestone — it represents a vindication for a technology that many had written off after the 2014-2015 bear market. The fact that Bitcoin is rallying on both fundamental improvements and macroeconomic demand suggests a maturing asset class finding its place in the global financial system.
With the year closing out strong and the network’s hash rate continuing to climb, 2017 is shaping up to be a pivotal year for Bitcoin and the broader cryptocurrency ecosystem.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are subject to high market risk. Always conduct your own research before investing.
800 was the level that made mainstream media finally pay attention again
global uncertainty from brexit trump and currency wars all fueled the rally
bitcoin smashing through 800 for the first time since 2014 felt monumental