ADVFN CEO Attributes Bitcoin’s Price Boost to China’s Currency Devaluation
ADVFN CEO, Clem Chambers, believes that the recent infusion of money from China into the crypto market caused the latest price rally in bitcoin value. Chambers is certain that the ongoing economic struggles and trade wars between China and America will transform bitcoin into a stable alternative for investors looking to hedge against any fallout.
An Asian-Driven Bitcoin Surge
According to Mati Greenspan, a senior market analyst, the notable surge in bitcoin price was undoubtedly driven by the Asian countries. The crypto expert did not agree that any other reasons like FOMO, short squeeze or any other ideas being given were the right triggers for bitcoin’s recent price hike. Chambers also offered similar remarks and added that what caused this instant inexplicable hike was the Chinese devaluation and perhaps the insider reactions to the planned currency devaluation.
The surge above $8,000 was definitely led by East Asia. Take a look at bitcoin volumes in Japanese Yen and Korean Won at the time of the surge (13:30 – 15:00 on the chart).
In contrast, USD volumes had only a small spike and USDT (tether) remained constant through the movement. pic.twitter.com/fHdD8gRTTL
— Mati Greenspan (@MatiGreenspan) July 25, 2018
The truth is that several insiders were already exchanging Chinese yuan with bitcoin before the currency devaluation that occurred a few days later. Also, the process of currency depreciation has been in progress for several weeks, but it only accelerated during the price hike.
The market response to the impending devaluation was a significant increase in bitcoin buy orders as people sought to dump China’s FIAT currency frantically. As expected, the bitcoin market demand skyrocketed, thus explaining the higher prices. Most of the affluent Chinese likely did not care whether or not they were being charged a premium price for Bitcoin provided they could quickly hedge their funds against the imminent devaluation.
The Bitcoin Impact of the Trade War Between U.S. and China
The ongoing trade standoffs between America and China, as well as the recent decision related to Chinese currency devaluation, means that BTC will become the preferred currency haven for rich people. Many industry experts believe that Bitcoin is much more convenient as compared to gold. Mr. Chambers, the ADVFN chief executive officer, says that if the trade stalemates persist, then Bitcoin may likely rise above the gold standard.
If these trade wars are not resolved quickly, then the prices of bitcoin will continue shooting up as people swap Chinese currency with bitcoin. From these price surges, you can see that the wealthy people are running to bitcoin first, rather than gold. In conclusion, based on this analysis of the bitcoin price rally, it appears that the surge should last a while longer provided there is no adverse market event, such as high-profile hacks.