Bitcoin price exceeded the $1,000 margin in main Chinese and South Korean Bitcoin exchanges such as Huobi and Korbit on Febbruary 1, after the celebration of the Lunar New Year. On January 28, China and South Korea celebrated the Lunar New Year. In this time of the year, capital outflow increases as Chinese and Korean people send red envelopes to relatives and friends as a cultural ceremony. Red envelopes contain money and are ordinarily given from the oldest to the younger member of a family.
On every 5th day of the primary month of the Chinese lunar calendar, the Chinese people celebrates a national holiday in which families prepare to pay tribute to the God of Wealth by presenting animals, desserts and fruits and launching fireworks to welcome the God of Wealth. During the last few weeks, Bitcoin exchange executives and analysts, which includes Bobby Lee, chief executive Officer of the famous Bitcoin exchange BTCC, have emphasized Bitcoin’s presence in main economies as a safe haven asset.
Bobby Lee said:
“Gold is kind of the hedge against the system, the status quo. Our society is ingrained with the modern economic system of fiat money, in which governments issue it, they could put out as plenty of it as they need. Modern money system, in a very rude way, it’s no different to airline miles or hotel reward points.”
Bitcoin price started to grow in 2016 as traders and investors started to perceive Bitcoin as an effective long-term investment and strong secure haven asset. This point of view led Bitcoin price to climb all-time highs and as it skyrocketed and approached the $1,000 mark, mainstream media coverage began to hype up the cryptocurrency.
There’s cycle within the growing Bitcoin price. An event triggers Bitcoin price to climb and mainstream media hype sends Bitcoin to all-time highs. Bitcoin price at the Chinese and Korean markets started to grow because of increasing capital flow and limit of money and economic offerings to supplement the Chinese Yuan or the Korean won leaving the country. It will be probably that the Bitcoin price will keep growing if media interest keeps boosting it up.
Bobby Lee stated:
“It was in the fourth quarter of 2016 when prices began getting much higher. In doing so, the higher expenses attracted media attention. Forbes, Wall Street magazine, Chinese media and others produced a self-reinforcing cycle of hype. Whilst the Bitcoin price nears an all-time high or reaches relative parity with gold prices, media attention accelerates.”