Bitcoin is showing its first signs of life after a long hiatus. Today, bitcoins are trading at $547.40 on Bitfinex. Fans would be glad to know that it is a significant 21.4 percent price leap in four days – the highest it has had for the past 21 months.

According to Huobi and OKCoin, the two leading exchanges in China, the sudden bitcoin jump is likely due to several new sign-ups and buy orders.

However, it would seems that bitcoin’s price variations are in more ways related to the macroeconomic situation in China, which could be ultimately mean a bitcoin investor’s greatest fear—deflation.

Like in some parts of the world, many people in China see bitcoin as an alternative channel to invest their money. Earlier, the Chinese government busted peer-to-peer lending, pushing lenders to seek alternatives in the form of bitcoins.

Apart from the purely Chinese influence, there is still a world of possibilities for bitcoins to continuously rise. Late last year, several bitcoin companies’ discussion to increase the transaction processing capacity of bitcoin fork led to the creation of a roadmap for the original Bitcoin Core project.

Experts say the upcoming Bitcoin Core updates might make bitcoin and the bitcoin blockchain more stable and powerful. Fans should also watch out for the lightning networks, which could enable anyone to send bitcoin in seconds. Paypal might want to watch out.


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