In contrast to bitcoin, the exchange rate of the Chinese yuan is set and controlled by the central bank of the country. The People’s Bank of China adjusts the exchange rate to respond to the global economy, in order to ensure that the Chinese economy will remain stable. At this time, the exchange rate of the yuan at a record low.
And that could, according to analysts, the positive impact on bitcoin. Bitcoin can serve as a safe haven for the Chinese people and their value should be maintained.
The new law provides for tensions between the united states and China
With the introduction and adoption of a new safety law in hong Kong, the tensions between the united states and China, have increased. This pressure would be bitcoin in the next few weeks and months, and also, indirectly, be able to help you.
The basic premise of the law is to combat the “growing terror”, say officials in Beijing are represented. However, many people in Hong Kong, as well as to the international community that the new law is considered to be a potential threat to democracy in the region.
Hong kong, was established in 1997 by the British to the Chinese, delivered, provided, however, that Beijing’s democracy until 2047, it would survive. The new safety law, it is for the people of Hong Kong will also be controversial.
The members of the government, from the White House, as well as their advisors, including the president’s Home, according to insiders involved with the sanctions against the Chinese companies. There is as yet nothing is confirmed, but the information about the sanctions, the global currencies will be affected.
And, with far-reaching consequences. D, the Chinese yuan is now at its lowest level since February 27, 2008.
Bitcoin may be to take advantage of this trend
One man’s death is another’s bread. Fall of the yuan at this low point, the bitcoin exchange rate a boost. Jeff Dorman, the CIO of the Ark, and is a former investment banker at firms such as Lehman Brothers and Citadel, recently wrote:
“Pay attention! In the spring/summer of 2019 fell, the yuan at an all-time low vis-à-vis the Us dollar and this has resulted in a significant contribution to the price of a single bitcoin. Conversely, when the policy in the fall of 2019 at the latest, stronger, became, fell, the price of bitcoin. And guess which currency it is going back to the lows of the season?”
In 2019, has the bitcoin may be to take advantage of the trade war between China and the United States of america. But not only, when it fell, a drop the yuan as one of the rising bitcoin.
Chris Burneke noticed that this was still the case in 2015 and 2016, “If the Chinese yuan continues to weaken against the U.s. dollar, we would see a repeat of in 2015 and 2016 (see below), which is the strength of bitcoin combined with the weakness of the yuan”.
If China’s $CNY continues to weaken against $USD, then we could have a 2015 and 2016 to be “repeat” (pictured below), where $BTC’s strength coincided with the yuan’s weakness. https://t.co/ISVJAZMX5O pic.twitter.com/VApfxe1SFw
By Chris Burniske (@cburniske) May 22, 2020