Weak RMB boosted demand for bitcoin in China

Posted 09 September, 2019

Analysts reported that the negative correlation between Chinese yuan and Bitcoin fell to a record low over the past seven days. The first cryptocurrency became a risk-hedging tool for many residents of China, so its rate has risen sharply on local exchanges.

Chinese national currency is falling. The CNY-USD depreciation is promoted by such reasons as the ongoing trade war with the USA and the easing of monetary policy by the country's central bank. In addition, the status of a legal and protected virtual asset has increased the interest of Chinese investors in bitcoin.

According to Dr. Garrick Hileman, a researcher at the London School of Economics, the trend towards the inverse correlation of Bitcoin and the renminbi began to form in the spring, when the tension in relations between the United States and China was only growing.

''In Asia were paying more for Bitcoin than elsewhere when the yuan fell. You can see it in the premium price paid sometimes for Bitcoin in exchanges like Huobi that primarily cater to Chinese.'' -  he stated.

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