Bitcoin did something yesterday (June 13) that no one has seen in two years — surge above the $700 mark.
$704.40, to be exact, by Monday evening — a 21 percent jump from Friday’s prices.
The reason for this surge is the coming "halving," which is an adjustment to bitcoin's design in order to control how new bitcoin can be created. This event is expected to occur in roughly 25 days.
Bitcoin hasn't been priced this high since Feb. 2014. That high was actually a low point. Bitcoin was worth more than $1,200 in Nov. and Dec. 2013.
When bitcoin was first released, a cap was placed on how many bitcoin could ever be produced. That magic number is 21 million bitcoin, and 15.7 million bitcoin have reportedly been mined. While it's not known what might happen after this halving goes into effect, many speculate that, if supply is cut, prices will jump.
However, most attribute the surge to the Chinese, who are desperately in search of new and more productive asset classes after the devaluation of the yuan. Bitcoin also offers a way for Chinese citizens to move their money out of China, which is not as easy as it used to be. Two Chinese exchanges — Huobi and OKCoin — collectively account for some 92 percent of global trading in bitcoin.
To keep up with bitcoin's price trends over the past three years, check out PYMNTS' recent data on bitcoin's high and low points.