Chinese crypto-market is bullish on Bitcoin, very much so. BTC's price has risen over 10%. Could this be because of yuan's fall?
Chinese national currency is reaching the bottom, so they turn to BitcoinIt's obvious that the Chinese market dictates the prices on the world's cryptocurrency market. Just yesterday BTC has reached its first peak in the 3 weeks, reaching $11 850. It's a movement of over 10% in less than 24 hours. There could be many reasons for such growth. One of them could be a liquidation of short positions on BitMEX. Another reason could be a huge fall in Chinese yuan, which has stopped at the lowest level in 10 years. The picture below clearly shows that yuan has fallen below 7 to the American dollar: According to CNN reports, Chinese currency started to lose after the People's Bank of China set the price at 6,9225. The bank justifies the fall by "trade protectionism and new tariffs". Donald Trump, President of the United States has incited the trade war between China and America and has forced new tariffs on the Asian country. The currency's devaluation is China's only weapon against the States, though it's not without risk. Beijing has already restricted the ban on currency export outside the country. And so Bitcoin has become a leading currency in China. The chief of investments at Hayman Capital Management, Kyle Bass, is one of several investors who had observed today's changes in the cryptocurrency market. He shared his opinion on Twitter:
CNH collapsing ... HKD won't be far behind. Mass exodus of capital out of CNH and HKD. This collapse has just begun.The Chinese have always been bullish on Bitcoin, which can't be said about their government. In difficult moments like the collapse of a national currency, these bullish movements are even more visible.