Bitcoin Forum

Did China Drive Bitcoin's Price to 2016 Highs?

The price of bitcoin surged nearly 20% during the week ending 3rd June, rising to its highest point in 20 months. But what was the cause of the increase?

Mainstream media sources have largely attributed this sharp increase to demand from the Chinese market, prompted by yuan devaluation. But not everyone agreed with this explanation, as some market experts asserted that the rally was tied to other developments both within and outside of the digital currency ecosystem.

http://www.coindesk.com/china-drive-bitcoins-price-2016-highs/

Relating every price movement with the Chinese market only isn't accurate imo, it is much complicated than that
In this article i may agree with that: ''However, the recent price increases could simply reflect a period of heightened volatility and could therefore fail to hold up.''

China has indeed been a very important driver for the price but the current demand comes also from other continents. The block halving hype attracts traders from all over the world. And it shows. Exchange price in China was $30 to $50 higher than other exchanges. Exchanges as Bitfinex, Bitstamp, Kraken didn't follow China when they were pumping the price like there is no tomorrow. The exchange price in China came back down to match the price of the above mentioned exchanges. Look now, there is barely any difference now.

Yes

It is kinda strange that  bitcoin's halving wasn't mentioned in this article at all. I think it is main reason behind recent overall positiveness of bitcoin markets.
Psychology of a crowd was always leading factor shaping bitcoin's price and it can't be disregarded here as well.