Bitcoin prices broke out again on Wednesday, as yuan instability in China and rupee restrictions in India continued to lend support to the cryptocurrency market.
The BTC/USD exchange rate surged 3.9% to $739.54 at 7:54 am ET, according to CoinDesk. The pair is on track for its highest settlement since November 2, when prices broke above $740.
Bitcoin has seen growing demand in emerging markets, as investors look to diversify away from volatile or uncertain asset classes. Chinese investors looking to store their assets outside the People?s Republic have been pouring into the cryptocurrency all year long in order to steer clear yuan volatility.
Recently, rupee restrictions in India have also boosted demand for bitcoin. India?s Prime Minister Narendra Modi recently decided to remove 500 and 100 rupee notes from circulation, sparking widespread risk aversion in the domestic market. The government said the efforts were an attempt to stem ?black money? flows into the economy.
Other signs of growing appetite for cryptocurrency include downloads of the bitcoin mobile app Zebpay, which recently passed 100,000 downloads.
The gains on Wednesday came despite continued strength for the US dollar, which is currently trading at more than one-year highs against a basket of other major fiat currencies. The US currency is likely to extend its gains further on growing expectations the Federal Reserve will raise interest rates next month for the first time in a year. The US dollar index was last seen trading at 100.40, up 0.1% from the previous close.