Bitcoin Soars Nearly 1000 Points: Is the King Back?

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For cryptocurrency enthusiasts, recent days have been anything but ordinary. After a prolonged slump lasting around five months, Bitcoin surged into bullish territory last Friday, climbing nearly 1000 points in just a few days. At one point, its trading price reached 3,944.30 CNY—the highest level since July 2014. “Never thought 4,000 would come so fast,” said Cao Lin (pseudonym), an experienced Bitcoin trader.

A Long-Awaited Surge

While traditional assets like Chinese equities and gold remain sluggish, Bitcoin has emerged as a standout performer, drawing renewed interest from investors across the spectrum. “It feels like that long-lost heartbeat is back,” Cao told reporters. “In recent days, Bitcoin has shot up like a rocket—truly a comeback worthy of a king.”

On May 25th, Huobi reported a closing price of 2,984 CNY. The next day, Bitcoin broke through the critical 3,000 CNY threshold and appeared to transition from stagnation to acceleration. By May 27th, the price briefly spiked to 3,944.30 CNY, marking a 24-hour gain of 9.41%. As of 19:30 that evening, the price had slightly pulled back to 3,812 CNY.

“This rally came out of nowhere,” Cao remarked. “Back at the end of last year, Bitcoin rose for seven consecutive weeks, nearly doubling from its annual low—many thought it was staging a full recovery. But the momentum didn’t last. After hitting $500, it plunged almost 50% within a week. Since then, activity has been lukewarm at best.” However, starting in late May, a steady upward trend began to take shape.

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According to data compiled by The Golden Securities, Bitcoin’s monthly gain had already reached 28.74% by May 29th. The digital currency first entered its golden era in 2010 when demand vastly outpaced supply, pushing its online exchange value upward. It later experienced explosive growth—peaking at gains of up to 20,000x its original value.

However, the collapse of Mt. Gox—the world’s first major Bitcoin exchange—in February 2014 following the theft of 850,000 BTC led to a sharp decline in confidence and price. At its lowest point, Bitcoin traded for just 933 CNY per coin.

Why Is Bitcoin Rising Again?

Several interrelated factors are fueling this resurgence in Bitcoin’s value.

1. Weakness in Traditional Markets

With equities underperforming and gold prices flat, investors are increasingly turning to alternative assets. Du Jun, co-founder of Huobi, explained: “Mainstream investments like stocks continue to show weakness without clear signs of recovery. Meanwhile, growing uncertainty has pushed more capital toward digital assets.”

Cao Lin echoed this sentiment: “With the U.S. raising interest rates, the RMB depreciating, and traditional markets failing to deliver returns, many investors are now looking at Bitcoin as a hedge.”

2. Anticipation of the Halving Event

One of the most significant drivers is the upcoming Bitcoin halving, scheduled for early July. This quadrennial event cuts the block reward for miners in half—from 3,600 BTC produced daily down to 1,800 BTC starting July 11th. This reduced supply occurs against a backdrop of steadily increasing demand, creating strong bullish fundamentals.

Historically, previous halvings have preceded major price rallies. Market participants are positioning themselves early, anticipating scarcity-driven appreciation over the next cycle.

3. Growing Institutional Interest in Blockchain

Domestic enthusiasm for blockchain technology is also playing a role. In February, PBOC Governor Zhou Xiaochuan confirmed that the central bank had dedicated resources to researching blockchain applications—a move widely interpreted as validation of the underlying technology behind cryptocurrencies.

While Bitcoin itself remains unregulated and unsupported by Chinese authorities due to its decentralized nature, increased government attention on blockchain has helped legitimize the broader ecosystem and boost investor confidence.

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Investor Sentiment Turns Bullish

The renewed momentum has sparked optimism among traders. A survey conducted by Huobi found that 59% of users remain firmly bullish, with many targeting a new milestone: 6,000 CNY.

To illustrate the potential returns, consider this scenario: an investor who bought 10 Bitcoins at the January 2015 low of 900 CNY (total investment: 9,000 CNY) would now hold assets worth approximately 38,120 CNY—a return exceeding 323% in just over a year and a half. This performance far surpasses most traditional investment vehicles during the same period.

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Navigating Volatility with Caution

Despite the excitement, experts urge caution. Recent weeks have seen extreme volatility—both Bitcoin and Litecoin experienced swings exceeding 20% in a single week. Such movements highlight the risks involved in digital asset trading.

“While the fundamentals look promising, investors must maintain discipline,” warned industry analysts. “Proper position sizing, risk management, and emotional control are essential during periods of rapid price change.”

Regulatory uncertainty also remains a key concern. As an unregulated asset in China, Bitcoin carries legal and operational risks that investors should not overlook.

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Frequently Asked Questions (FAQ)

What caused Bitcoin’s recent price surge?

The rally is driven by multiple factors: weakening performance in traditional markets (stocks, gold), anticipation of the July 2025 halving event reducing supply, increased demand due to RMB depreciation, and growing institutional interest in blockchain technology.

What is the Bitcoin halving?

The Bitcoin halving is a programmed event occurring roughly every four years (or every 210,000 blocks). It reduces the mining reward by 50%, effectively cutting new supply in half. This scarcity mechanism often precedes significant price increases.

Is now a good time to invest in Bitcoin?

Market conditions appear favorable due to halving anticipation and macroeconomic pressures. However, high volatility means timing is critical. Investors should conduct thorough research and consider dollar-cost averaging rather than lump-sum entries.

How does RMB depreciation affect Bitcoin demand?

As the RMB loses purchasing power, Chinese savers seek alternative stores of value. With over 40 trillion RMB in personal deposits exposed to currency devaluation, many are turning to Bitcoin as a potential hedge against inflation.

Could the government ban Bitcoin again?

While China has previously restricted cryptocurrency trading and mining activities, a complete ban on ownership is unlikely. However, regulatory actions could still impact market sentiment and liquidity.

What should traders watch next?

Key indicators include post-halving price behavior, trading volume trends on major exchanges, global macroeconomic data (especially U.S. rates and inflation), and developments in blockchain adoption by enterprises and governments.

Final Thoughts

Bitcoin’s recent surge—from under 3,000 CNY to nearly 4,000 CNY—is more than just a short-term rally; it reflects deeper shifts in investor behavior and macroeconomic reality. With traditional assets struggling and structural supply constraints looming, digital currencies are regaining attention as viable alternatives.

Yet amid the euphoria, prudence remains vital. As history shows, rapid gains can be followed by equally swift corrections. Whether Bitcoin reaches 6,000—or even higher—the path will likely be volatile. Smart investors won’t chase momentum alone; they’ll prepare for all scenarios with strategy and discipline.

The king may be returning—but only those who trade wisely will ride the wave successfully.