Chinese Market Plays a Larger Role in Bitcoin’s Dynamic Price Movements Than Previously Imagined
- As per a number of research studies, the Chinese economy has been having a direct influence on the price of Bitcoin for the past 3-4 years.
- Even today, China still houses one of the largest crypto OTC markets in the world.
Since the start of the year, Bitcoin has been on a financial tear, with the price of the flagship crypto asset increasing from the $3k mark to around $8k within a span of just 5 months. In this regard, a number of crypto experts have been trying to figure out why exactly the currency has been performing so well this year.
As per a report released by Adamant Capital earlier this week, the firm’s core research team has found that Bitcoin’s “sideways movement” over the past 12 days (between a range of $7000 to $8000) could potentially help to push the price of the premier cryptocoin to around the $11k mark.
More on the Matter
As per a number of studies released by the Tuur Deemester led firm recently, one major factor that is directly correlated to BTCs ongoing price fluctuations is
“China’s involvement with the United States and their ongoing trade war”.
In regards to the matter, a spokesperson for Adamant Capital was recently quoted as saying:
“ On May 5th, the Chinese Yuan started weakening against the US dollar, and 13 days later traded 2.5% lower — a huge move in Forex terms. Remarkably, that was also the week that bitcoin broke above the resistance of $6,500. In short, there’s a significant chance that in fact it was Chinese investors who pushed bitcoin in bull market territory this year.”
- The report also puts forth a host of historical data that links BTC's dynamic price shifts (all the way back from 2016) to various monetary changes taking place across the Chinese economic sector.
- Researchers at the firm have also made it clear that just because OKCoin and Huobi have seen their usage numbers in China go down over the past 12 months, that did not mean that the country's crypto market was no longer thriving.
- As things stand, China still possesses one of the most active OTC markets in the world.
It's worth noting that Bitcoin’s current parabolic curve “represents the fastest increase in unrealized profits since January 2012”. As a result of this, it now appears as though the BTC might surpass the $9K mark, following which the premier altcoin will once again slide and eventually settle down around the $6800 – $7680 region.