Bitcoin is zooming higher

Bitcoin is zooming higher on Tuesday, up 1.6% at $1,055 per coin as 7:03 a.m. ET. Tuesday’s bid has the cryptocurrency higher for a ninth straight day and at its best level since January 5, when it put in a multi-year high of $1161.88.

While the catalyst for Tuesday’s gain is difficult to decipher, the advance comes after data released by the People’s Bank of China showed China’s foreign currency reserves in January fell below $3 trillion for the first time in nearly six years. China’s hunger for bitcoin has been well documented with nearly 100% of bitcoin’s volume coming from the country.

Bitcoin has had a wild start to 2017 after gaining 120% in 2016. The cryptocurrency rallied more than 20% in the opening week of the year before tumbling 35% amid concerns China was going to crackdown on trading. Bitcoin has recently shrugged off an announcement made by China’s three largest bitcoin exchanges that they were going to begin charging a flat fee of 0.2% per transaction.

NOW WATCH: Here’s how to use one of the many apps to buy and trade bitcoin

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