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Weaker yuan boosts demand for BTC in China

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Weaker yuan boosts demand for BTC in China

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Cryptocurrency No. 1 may turn out to be a new risk-free asset for the Chinese, experts say. They draw attention to the greater inverse correlation between Bitcoin and the yuan. This trend may indicate that China's investors are increasingly considering BTC as a safe-haven asset.

According to analysts, the reverse interdependence between Bitcoin and the Chinese currency reached peak values at the end of last month. Experts noted that this trend had started back in April-May 2019. Interestingly, at that time, the trade confrontation between Beijing and Washington was gradually gaining momentum.

The representative at the London School of Economics stated in his study that the recent fall of the renminbi had boosted demand for BTC. As a result, the cryptocurrency appreciated since Asian sellers were ready to pay for Bitcoin more.

The devaluation of the Chinese currency is attributed to a number of factors such as a slowdown in the country's economic growth, a trade war with the United States, and easing monetary policy.

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