Bitcoin eyes market growth heading into June as yuan falls to its lowest levels in eight months.
Both assets have shown an erratic negative correlation in the past.
Goldman Sachs sees yuan falling to its 2008 low, raising possibilities of an explosive price rally in the Bitcoin market.
With halving in rearview, Bitcoin traders are now looking at their next potential bullish narrative: a weakening yuan.
That’s because the cryptocurrency tends to move positively when the Chinese currency falls. Last year, the 30-day inverse correlation between both the assets reached a record high. Dr. Garrick Hileman, the head of research at Blockchain, told Bloomberg that Chinese investors were buying Bitcoin as a safety net against the then-escalating U.S.-China trade war.
“There’s corroborating evidence for this, in that people in Asia were paying more for Bitcoin than elsewhere when the yuan fell,” he said in September 2019.
The fractal is now playing all over again. Bitcoin is up 32.13 percent on a year-to-date timeframe. On the other hand, yuan fell to its lowest level in eight months. Meanwhile, the only thing that appears to be relating their opposite moves is a freshly brewing tensions between the U.S. and China.
Yuan to Fall Lower
The animosity flared over Beijing’s decision to slap a new security law in Hong Kong. That prompted the West to say that the former British territory was no longer an autonomous region. Top Washington officials, including Donald Trump, expressed their doubts over Hong Kong’s future as a global commercial and financial hub under a communist regime.
The rising geopolitical issue spilled over yuan as the currency started trading for 7.17 per dollar on Friday morning. That prompted the People’s Bank of China to intervene and set yuan’s daily central parity rate more robust in the onshore spot market. While yuan recovered, the rebound, more or less, looked artificial.
Yuan recovers after falling to 8-month low against the US dollar | Source: TradingView.com
Analysts at Goldman Sachs spotted these uncertainties. In a note published Sunday evening, strategist Zach Pandl said that the rising U.S.-China tensions could lead yuan further lower in the next three months. He predicted that the currency would fall to 7.25 per dollar by the end of August 2020.
Bitcoin
The falling yuan and rising U.S.-China rift served as a great reminiscent of a bitcoin price rally last year.
The day yuan fell below 7 per dollar – on August 5, 2019 – the bitcoin price jumped more than 7 percent. A similar incident occurred during the 2015-2016 trade session. In August 2015, PBOC devalued yuan by 3.5 percent, a move that sent the bitcoin price up by 22 percent.
In 2016, yuan closed the year at a 7 percent loss. Bitcoin, in the same year, rallied more than 125 percent.
Bitcoin (XBT) against Yuan in 2015 and 2016 | Source: Chris Burniske
“If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness,” said Chris Burniske, partner at venture capital firm Placeholder.
The demand for bitcoin comes from people who are looking to bypass China’s strict capital control over sending money offshore. Bitcoin serves as an alternative since its underlying protocol works independently from governments and central banks. It has prompted China to ban bitcoin trading altogether.
BTCUSD up 31.95 percent YTD | Source: TradingView.com, Coinbase
Nevertheless, in 2020, Bitcoin has also emerged as a macro asset against inflation. Top investors, including billionaire hedge fund manager, Paul Tudor Jones, have thrown their weight behind the cryptocurrency as the Federal Reserve continues its open-ended stimulus program to aid the ailing U.S. economy.
With China also undergoing a recession, demand for safe-havens could see the bitcoin price higher further into June and the rest of the year. origin »
The forthcoming introduction of a digital yuan in China is the latest in the ongoing battle between fiat currencies and bitcoin.
The post What Does The Digital Yuan Mean For Bitcoin? appeared first on Bitcoin Magazine.
Bitcoin traders used to treat a weaker yuan as their cue to increase their exposure in the cryptocurrency. But it now appears they want to keep holding Bitcoin even against a rising Chinese currency.
Bitcoin has had a monumental morning on the Asian trading session. With a 10 percent surge on the day BTC has reached a three week high while in China, the Yuan collapses to a 10-year low against the greenback.
BTC Spiked As The RMB Fell Evidence is purportedly mounting that Bitcoin and the Chinese Renminbi (RMB), known as the Yuan, are tied to each other. A report from the South China Morning Post recently.
One of the more popular justifications for the current bull market floating around the Internet is the growing hostility between China and the USA. Several experts and industry insiders believe Chinese investors are pulling their money out of the Yuan in anticipation of further depreciation, as reported by Forbes on May 15, 2019.
By CCN: Bitcoin is on a tear as the price of the flagship cryptocurrency has gone supersonic in 2019. It is widely believed that bitcoin’s remarkable rally is a result of booming institutional interest in the cryptocurrency, as investors are looking for alternative asset classes to park their funds at a time when the stock market is in turmoil and the global economy is on edge.
As a trade war between US and China has taken off, the US is raising trade tariffs with Chinese yuan rate going down and people starting to use crypto as a safe haven. Several major...
The post Chinese Entering Bitcoin As Safe Haven, Driving Recent BTC Price Surge: Forbes appeared first on Ethereum World News.
This article was originally published by 8btc and written by Lylian Teng. The bitcoin price has broken $8,000 for the first time since July 2018, with most cryptocurrencies trading in the green.
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Coinspeaker Bitcoin Below $1 Million by 2020 is Impossible, It’s Pure Mathematics, Says John McAfeeAccording to John McAfee, Bitcoin will be used for payments and receipts instead of the US dollar, Euro, and Chinese Yuan, and will hit $1M by the year of 2020.
Bitcoin [BTC] recently led a significant bull run which pumped up the price by 15% in valuation. After the hike, the price of USDT was over 7 yuan on over-the-counter platforms, which meant crypto traders based out of China had to pay an additional 3 percent to 5 percent for Tether [USDT] to avoid a […]
The post USDT premium was caused by USD inflow and not Tether Inflation, claims Chinese Bitcoin Billionaire appeared first on AMBCrypto.
This article was originally published by 8btc and written by Chloe Jiang. The former director of Bitmain’s mining farm, a leading bitcoin mining operation, once said the wet season may not be as much of a boon for miners as many thought.
This article was originally published by 8btc and written by Lylian Teng. Many Chinese cryptominers have migrated to places with cheap electricity and favorable policies as a result of the escalated government crackdown on cryptocurrency and its production process.
Now that the cryptocurrency market has seemingly bottomed or is near its bottom, an influx of Chinese Yuan (CNY)…
The post Chinese Crypto Bulls on the Horizon — Almost $160M Yuan Flowed into the Bitcoin Market in the Last 24 Hours appeared first on Invest In Blockchain.
Chinese Money is flowing into Bitcoin and cryptocurrencies from the profits made by its roaring stock market. Largest Chinese exchanges registered double volume while Chinese Yuan is seeing the highest money flow in cryptos after US dollar in fiat currency.
Back in January 2017, China’s financial authorities initiated their first crackdowns against domestic bitcoin exchanges, with a ban on mainland exchanges cryptocurrencies against the yuan coming shortly thereafter.
China is returning to Bitcoin investment despite its ongoing trading ban, data suggests this week as the Bitcoin price holds higher. Yuan No. 2 Entry Fiat Currency Statistics gathered by monitoring resource Coinlib showing capital inflow into bitcoin and other cryptocurrencies puts the Chinese yuan (CNY) in the top entry currencies.
According to a report by local financial news outlet Taiwan Economic Daily, Taiwan’s Financial Supervisory Commission (FSC) has announced that it will establish a new mechanism to raise funds based on security token offerings (STOs).
A Chinese crypto mining pool founder predicted that the next bull run would unleash the market’s full potential, enabling the Bitcoin price to ascend to unfathomable heights before the euphoria cools down.
According to the Zhu Fa, the co-founder of Poolin (a Chinese crypto mining firm), the price of Bitcoin (BTC) could scale up to a staggering 5 million Yuan (USD $738,000 approx) in the coming few years.
Chinese Police arrested a group of cryptocurrency scammers following a raid in Xuchang City. The bust, which took place five months ago, was only publicized this week after a story on CCTV News. During the break-in, police seized cash valued at $1.
A Taiwanese Bitcoin miner identified with the last name Yang was recently arrested and charged by authorities for mining 100 million yuan ($14. 5 million) in cryptocurrencies. He used NT$100 million ($3.
Grandshores Technology Group is a public company affiliated with a 10 billion yuan ($1. 5 billion) fund backed by the government of Hangzhou, the capital of China’s Zhejiang Province. It is known to be developing a new stablecoin, which is now expected to hit the market by February 2019.
The People's Bank of China (PBoC), China's central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country. In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of "disguised" Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.
The People's Bank of China (PBoC), China's central bank, has its eyes on cryptocurrency companies that run airdrop campaigns in the country. In its most recent financial stability report for 2018, which was published on Friday, November 3, 2018, the bank said there has been a surge in the number of "disguised" Initial Coin Offerings (ICO), including the free distribution of crypto tokens through airdrops, despite its effort to clamp down on their activities.
The Taiwanese Government recently amended their anti-money laundering and Countering Finance Terrorism (AML/CFT) laws concerning cryptocurrency regulations. According to an Asia Times article published on November 5, 2018, these revisions and changes will give Taiwan’s Financial Supervisory Commission (FSC), the ability to crack down on any anonymous cryptocurrency transactions.
A Japanese bank has taken advantage of the ruling that stablecoins are not cryptocurrencies. The First Bank of Toyama has launched a pilot project to test its own stablecoin, the First Bank Coin (FBC), and plans to commercialize the token in October 2019.
The Taiwanese government has amended its laws that regulate cryptocurrency transactions. The revisions reportedly give the country’s Financial Supervisory Commission “the authority to crack down on anonymous virtual currency transactions.
The Taiwanese government has amended its laws that regulate cryptocurrency transactions. The revisions reportedly give the country’s Financial Supervisory Commission “the authority to crack down on anonymous virtual currency transactions.
The Venezuelan government has opened up an exchange desk for the country’s national cryptocurrency at the headquarters of the Superintendency of Cryptoassets. According to the government, investors can now purchase the petro with a number of fiat currencies and cryptocurrencies.
The Chinese government is known to come down hard on anything they see as a threat to the nation. Bitcoin and other cryptocurrencies were no exception. The state had placed a blanket ban in the past in order to protect the Chinese Yuan.
Nouriel Roubini and Peter Van Valkenburgh To Discuss Cryptos In Congress Today Nouriel Roubini and Peter Van Valkenburgh To Discuss Cryptos In Congress Today OKCoin USA to Release New Chinese Yuan (RMB)-backed Stablecoin OKCoin USA to Release New Chinese Yuan (RMB)-backed Stablecoin Crypto Funds Get Investments from Stanford, Harvard, MIT, North Carolina and More Per […]
A Chinese bitcoin miner from Shanxi province has been jailed after admitting to the theft of 104,000 yuan ($15,000) worth of electricity from a train network. Cheap Day Return Obviously, stealing that much power would take an awful lot of train travel.
The national currency of China weakened beyond a critical level as political tensions with the US worsened. The yuan dropped below 6. 93 per dollar this week, within a striking range of its January 2017 low, owing to a series of negative factors from weaker equities to a vaguer monetary stance by the People Bank of China.
I’ve heard some pretty innovative ways to avoid the electricity bill while mining cryptocurrency, but this is a new one. A Chinese man has been stealing electricity from a local railway network operator in order to power his Bitcoin mining rigs.
Today, September 12, 2018, OKCoin announced that the company will be offering token-to-token only trading in twenty states across the U. S. This announcement of its expansion in U.
Police in China has detained three men suspected of pulling the country’s biggest ever cryptocurrency heist — worth 600 million yuan ($87 million). Theft is China’s Biggest: Reports As multiple outlets report quoting local news publication Huashang News on August 19, authorities concluded an investigation spanning almost six months into three men who allegedly hacked a computer for Bitcoin and Ether.
Bitmain is ranked 13th on the list, with Hurun valuing the company to be worth 70 billion yuan ($10. 3 billion USD approximately). Canaan Creative also holds a significant position on the list, sitting at 32nd (tied with 20 other companies) with a valuation of roughly 20.
On July 11, 2018, the Chinese police apprehended over 540 people for organizing an online soccer gambling game which involved the exchange of bitcoins. The illegal betting places were conducted in south China’s Guangdong Province.
In a first for China, an illegal World Cup gambling ring has been busted holding more than $1. 5 billion in live bets – all in cryptocurrencies. Six major suspects are in custody. Nestled in a southern Guangdong province, the syndicate is reported to have themselves been sitting on $1.
China was once the hub of the cryptocurrency movement. After a government crackdown in 2017, however, China has become a cryptocurrency “wasteland” according to a new report from Bloomberg. “Crackdown turns China from bitcoin’s epicenter to a wasteland,” reported Bloomberg earlier this week, citing stats like declining Yuan volume on cryptocurrency exchanges worldwide. The Chinese […]
China is one of the more technologically advanced nations in the world, and with its population closing in on 1. 4 billion, it was naturally one of the biggest Bitcoin markets during the cryptocurrency’s early days.
A report from the Chinese news agency, Xinhua, has revealed that the Chinese Yuan’s share of bitcoin transactions has fallen dramatically following the Chinese government’s decision to impose a series of bans and restrictions on cryptocurrency trading and ICO fundraising in the world’s second largest economy.
In an attempt to stem growing enthusiasm for cryptocurrency trading among the Chinese public, the Chinese government has been cracking down hard of cryptocurrency traders and speculators, banning cryptocurrency exchanges and outlawing ICOs.
The People’s Bank of China (PBOC) has declared victory over Bitcoin, stating that the market leader’s trading in its national currency has fallen to less than 1 percent of total global volume.
Bitcoin trading in China is under tremendous pressure, as Chinese authorities continue to run the gauntlet into cryptocurrency trading and suspending transactions. The authorities claim the move is aimed at minimising the risks for its people.
Bitcoin price failed to recover above $107,000. BTC is trimming gains and might could continue to move down if it trades below $102,500. Bitcoin started a fresh decline after it failed to clear $107,000.
Square, the payment services arm of Block, has launched its Bitcoin payment feature for small businesses, allowing them to accept BTC payments and manage their digital assets alongside traditional finances through its point-of-sale platform.
Eric Trump, son of US President Donald Trump and executive vice president of the Trump Organization, has revealed new bullish predictions for Bitcoin (BTC).
Bitcoin price is attempting to recover above $103,500. BTC could continue to move up if it clears the $106,500 resistance zone. Bitcoin started a decent recovery wave above the $103,500 support. The price is trading above $104,500 and the 100 hourly Simple moving average.
Bitcoin price is struggling below $105,000. BTC could continue to move down if it stays below the $104,200 resistance. Bitcoin started a fresh decline below the $104,000 support. The price is trading below $104,000 and the 100 hourly Simple moving average.
