In a dramatic resurgence, Bitcoin has once again captured global attention with a sharp surge in value. On May 29, the cryptocurrency reached an intraday high of $599 per Bitcoin—nearly 3,944 CNY—marking a 9.41% increase over 24 hours and the third consecutive day of gains. This momentum has pushed Bitcoin to its highest level since July 2014, sparking renewed excitement among investors and traders alike.
Over the past five months, Bitcoin has demonstrated steady upward movement. This week alone, it posted a staggering 32% gain—the largest weekly increase since the collapse of the Bitcoin bubble in November 2013. Market watchers are now asking: Is this the beginning of a new bull cycle?
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The Forces Behind the Rally
Several interrelated factors are fueling Bitcoin's resurgence. Xu Mingxing, founder and CEO of Chinese Bitcoin exchange OKCoin, attributes the recent price climb to heightened global interest in blockchain technology—the decentralized ledger system underpinning Bitcoin.
“Over the past six months, blockchain has become a major focus worldwide,” Xu explained. “As awareness grows, so does attention toward Bitcoin itself. While Bitcoin is a market-driven asset and volatility is normal, short-term spikes can also be influenced by trader behavior.”
Though Bitcoin operates independently of central banks, its price dynamics are increasingly shaped by macroeconomic trends, technological adoption, and shifting investor sentiment.
Understanding Bitcoin: From Inception to Innovation
Launched on January 3, 2009, by an anonymous figure known as Satoshi Nakamoto, Bitcoin introduced the world to a revolutionary concept: a decentralized, peer-to-peer digital currency secured through advanced cryptography. Unlike traditional money, no single institution controls it. Instead, transactions are verified across a distributed network, ensuring transparency and security—even against powerful computing attacks.
A key design feature is scarcity. The total supply of Bitcoin is capped at 21 million coins, released gradually through a process called mining. Every ten minutes, miners solve complex mathematical problems using high-powered computers to validate transactions and maintain network integrity. In return, they receive newly minted Bitcoins as rewards.
This deflationary model—where supply decreases over time—is central to Bitcoin’s long-term value proposition.
A Rollercoaster History: Boom, Bust, and Renewal
Bitcoin’s journey has been anything but smooth. From 2009 to early 2010, it held virtually no monetary value. By April 2010, one Bitcoin was worth less than 14 cents. But as demand began to outpace supply during the summer of that year, prices started rising.
What followed was an unprecedented growth phase—Bitcoin’s value skyrocketed by as much as 20,000 times, drawing waves of speculative investment, particularly from China. Today, Bitcoin’s total market capitalization exceeds 20.1 billion CNY, with Chinese exchanges accounting for 70–80% of global trading volume.
However, volatility remains a defining trait. In February 2014, the collapse of Mt. Gox—the world’s first major Bitcoin exchange—after the theft of 850,000 Bitcoins sent shockwaves through the market. Prices plummeted, bottoming out at around 933 CNY per Bitcoin.
Now, signs point to a revival—what many are calling Bitcoin’s “second spring.”
Demand Drivers: Why Now?
Cryptcoinews, a leading blockchain news outlet, suggests that RMB depreciation is playing a role in boosting Chinese demand for Bitcoin. With over 40 trillion CNY in personal savings exposed to currency devaluation pressures, investors are actively seeking alternative assets.
While Xu Mingxing downplays direct links between Bitcoin and RMB exchange rates—citing Bitcoin’s relatively small market size—others highlight broader structural shifts.
Du Jun, co-founder and CMO of Huobi.cn, identifies three core catalysts:
- Supply Shock: Bitcoin undergoes a "halving" event approximately every four years, cutting mining rewards in half. The next halving is scheduled for late June 2025, reducing new supply and historically preceding price increases.
- Regulatory Clarity: The U.S., Europe, and Japan have moved toward legitimizing Bitcoin as a payment method and regulating exchanges. Clear rules reduce uncertainty and attract institutional participation.
- Investment Drought: Traditional markets like stocks and P2P lending have underperformed since late 2024. As investors search for new opportunities, fast-moving digital assets like Bitcoin become attractive alternatives.
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Regulatory Landscape: Caution Amid Curiosity
Despite growing adoption, Bitcoin remains unregulated in China. In December 2013, five Chinese government agencies issued the Notice on Preventing Bitcoin Risks, stating clearly:
“Although referred to as ‘currency,’ Bitcoin is not issued by monetary authorities and lacks legal tender status or compulsory use. It should be treated as a virtual commodity—not real currency—and must not circulate in the market as such.”
Under this guidance:
- Financial institutions cannot price goods or services in Bitcoin.
- Banks and payment processors are barred from buying, selling, or insuring Bitcoin-related products.
- No direct or indirect support for Bitcoin services is permitted.
Yet paradoxically, Chinese regulators are actively exploring blockchain technology. In February 2025, People's Bank of China Governor Zhou Xiaochuan confirmed that the central bank has dedicated teams researching blockchain applications. Domestic experts report increased engagement from officials seeking technical insights and policy recommendations.
This dual stance—rejecting the asset while embracing its foundation—reflects a nuanced approach to innovation versus financial stability.
Frequently Asked Questions (FAQ)
Q: Is Bitcoin legal in China?
A: No. While owning Bitcoin isn't explicitly criminalized, trading and financial services involving Bitcoin are prohibited for regulated institutions. Individuals trade at their own risk.
Q: What causes Bitcoin’s price to rise?
A: Key drivers include supply constraints (like halvings), macroeconomic uncertainty, institutional adoption, and technological interest (e.g., in blockchain).
Q: How does mining work?
A: Miners use powerful computers to solve cryptographic puzzles that validate transactions. Successful miners earn new Bitcoins—a process essential to network security and coin distribution.
Q: Will Bitcoin keep going up?
A: Past performance doesn’t guarantee future results. While historical patterns suggest upward pressure post-halving, external factors like regulation and market sentiment play critical roles.
Q: Can I buy Bitcoin safely?
A: Yes—through compliant international platforms with strong security measures. Always conduct due diligence before investing.
Q: Why is blockchain important beyond Bitcoin?
A: Blockchain enables secure, transparent record-keeping across industries—from finance to healthcare—without relying on central authorities.
Looking Ahead: Volatility Ahead?
Bitcoin’s recent rally reflects growing confidence in decentralized finance and digital scarcity. However, its history warns against complacency—sharp rallies often precede steep corrections.
Still, with increasing global recognition of blockchain technology, clearer regulations abroad, and persistent demand for alternative investments, Bitcoin may be entering a more mature phase of adoption.
Whether this rally sustains or corrects will depend on how well the ecosystem balances innovation with stability—and how regulators worldwide choose to respond.
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Core Keywords: Bitcoin, blockchain technology, mining, cryptocurrency, halving event, virtual commodity, decentralized finance, market volatility