US and China Trade War May Be Driving Chinese Investors To Bitcoin (BTC)

The trade war between the United States and China is reaching new highs recently as the Chinese yuan keeps falling in value. Because of this, some signs that Chinese investors are starting to buy Bitcoin are starting to appear these days.

According to a recent report made by Bloomberg, the negative correlation between the Chinese national fiat currency and the largest crypto asset in the world, Bitcoin.

Before now, the Chinese government constantly tried to keep the value of the yuan afloat. It should be worth above 7 CNY to 1 USD, but now the government has decided not to protect the currency in order to hurt the U. S. This made the yuan reach its lowest level in around 10 years.

This was an escalation of the trade war, which got heated after the U. S. President Donald Trump threatened to impose 10% tariffs on all Chinese products.

Another sign that Chinese investors are buying a lot of Bitcoin is that exchanges that cater to the Chinese market such as Huobi are trading with a premium right now because there are a lot of people who want these assets at the moment.

According to Garrick Hileman, the research director at Blockchain, the trade war has caused tension in China and the devaluation of the national currency has affected the population, which is looking for more stable assets right now. Some see Bitcoin as a safe haven asset, so they are investing in it.

In related news, China is reported to be creating its own digital currency (which will probably be centralized). The People’s Bank of China has affirmed that its own token will have several features that others do not have.

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Gabriel Machado
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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