The leading crypto-currency Bitcoin is increasingly moving in the opposite direction to the value of the Chinese currency. This suggests that BTC has become a place of refuge for the protection of the depreciation of the Yuan, said a recent analysis by Bloomberg.
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The Chinese are willing to pay more for Bitcoin to
According to a Bloomberg analysis from 06. September 2019 and reached the 30-day correlation between the Yuan and Bitcoin is a record-inversion relationship. This suggests that the Chinese are willing to pay higher prices for Bitcoin, if the Yuan’s value falls.
Dr. Garrick Hileman, a researcher at the London School of Economics and research Director of Blockchain.com commenting on the record level with the following words:
“There is confirmatory evidence that the people in Asia have paid more for Bitcoin than elsewhere, as the Yuan fell, [ … ], You can see it on the Premium price that is sometimes paid for Bitcoin on exchanges like Huobi, directed mainly at Chinese people.”
Trade war between China and the United States could be the trigger
The continuing trade war between the United States and China led to a weakening of the Chinese state currency.
The reverse correlation “was also in April and may, more clearly, and as the tensions with the deterioration of the trade relations between the United States and China increases,” added Hileman.
New negotiations between China and the US are scheduled for October. Until then, the levying of the punitive tariffs should remain for the time being.
Bitcoin as a escape in case of currency fluctuations
The Venezuelans put in this year more on Bitcoin. For years, the country suffers from the by the US-imposed economic sanctions. One of President Nicolas Maduro launched a State cryptocurrency should bring fresh money into the coffers of the beleaguered country, but the “Petro” Inflation could not stop.
In February of this year, the high increased over-the-counter Bitcoin trading volumes to a new record. In a seven-day period of 2,000 Bitcoin exchanged to a value of approximately 21 million US dollars to the holders.