Bitcoin and USD/CNY Seen Spiking in Unison | Crypto Craft

  • Bitcoin and USD/CNY Seen Spiking in Unison

    From bitcoinist.com

    Over the last week, price moves in the bitcoin market have closely tracked performances in the U.S. dollar and Chinese yuan. All of this shows bitcoin is solidifying its position as a true macro force in the financial markets. A recent tweet from Ceteris Paribus pointed out two important market moves, as BTC/USD bounced from the August 2nd lows at $10,365 while USD/CNY rallied to ¥6.9479. Three days later, even larger moves occurred in the renminbi as USD/CNY was pegged at an opening rate of ¥7.0120 before moving to highs of ¥7.0513 during the U.S. session. This move came as BTC/USD bounced from August 5th lows at ... (full story)

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TwoSense
Aug 5, 2019 9:54pm
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Quoting Cryptobuzz
{quote} Hmm...Not positively, but -vely correlated. As USDCNY goes up, it indicates Yuan falling, so Yuan falling and BTC rising, as Chinese guys looking for alterative assets away from Yuan. BTC is one such option for them. I, however dont think this is a long term correlation trend, as BTC moves on far more other factors.
Good call. It would mean negative correlation. Thanks!
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Cryptobuzz
Aug 5, 2019 9:33pm
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Quoting TwoSense
{quote} If bitcoin and the yuan are in fact positively correlated, it would be surprising. The article is making a good argument that bitcoin is acting as a safe haven asset for the Chinese investor.
Hmm...Not positively, but -vely correlated. As USDCNY goes up, it indicates Yuan falling, so Yuan falling and BTC rising, as Chinese guys looking for alterative assets away from Yuan. BTC is one such option for them. I, however dont think this is a long term correlation trend, as BTC moves on far more other factors.
Reply
TwoSense
Aug 5, 2019 9:30pm
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Quote
But what is surprising is the market’s response through cryptocurrency, which is now essentially functioning as a safe-haven asset.
If bitcoin and the yuan are in fact positively correlated, it would be surprising. The article is making a good argument that bitcoin is acting as a safe haven asset for the Chinese investor.
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