Bitcoin Price Rises as China and US Back on Trade War Track: Bloomberg

Libra Coin News
Sat, 09/07/2019 - 14:30
Yuri Molchan
Bloomberg reports that as Chinese yuan is going down on charts, the Bitcoin price is rising as investors are hedging their risks against the RMB plunge
Cover image via 123rf.com
Contents

As the US and China are getting back to the trade war track, the yuan rate is plunging, making Bitcoin price go up again.

After Bitcoin had dropped below the $10,000 level recently and had stayed there for a while, the other day BTC got back above the crucial $10,000 mark. At press time, BTC is exchanging hands at $10.389.

Image by CoinMarketCap.com

Bloomberg: Bitcoin rises as yuan drops 

An analysis made by Bloomberg states that Asian investors have been buying BTC with a large premium on exchanges, such as Huobi and that those investors are mainly Chinese. 

Dr Hileman from the London School of Economics, who is also the head of Blockchain.com’s research team, said:

There’s corroborating evidence for this, in that people 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.”

Apart from the trade war effect that is pushing Chinese investors towards Bitcoin, the fact that earlier this summer a local court ruled that Bitcoin is a virtual asset also added to the popularity of BTC in this country.

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Bakkt is to launch Bitcoin futures

Analysts name the announcement about launching Bitcoin futures trade on September 23 made by Bakkt earlier as another reason for the surge of the Bitcoin price.

Yesterday, U.Today reported that Bakkt had kicked off its crypto custody service dubbed ‘Bakkt Warehouse’ ahead of the BTC futures launch.

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.


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