Bitcoin price soars past $450 on the back of China turbulence

 
Clara Guibourg
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"Bitcoin is living up to its name as a form of digital gold" (Source: Getty)

Bitcoin is having a roaring start to 2016 so far.

While the pound has fallen to a five-year low against the dollar amid another turbulent day in China, bitcoin has benefited from the drama to go on a tear to $450 and beyond, hitting its highest point since Christmas.

The cryptocurrency started the day at $430 but spiked several times to soar as high as $452.79 by this afternoon.

Bitcoin was boosted by Chinese stocks plummeting anew, with the Shanghai Composite index plunging 7.3 per cent, triggering a shut down of the market less than half an hour into trading, as the so-called circuit-breaker was pulled for the second time in a week.

Over 80 per cent of global bitcoin trading takes place in China. As the renminbi depreciates, many have begun flocking towards the digital currency instead, according to Charles Hayter from CryptoCompare:

The Chinese Bitcoin Exchanges are being used as a means to exit the renminbi and as a flight to safety. Bitcoin is living up to its name as a form of digital gold.

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