Chinese Exchanges Agree: Bitcoin Price Has Nothing to Do With Capital Controls
The price of bitcoin continues to rise, led primarily by the exchanges in China, which have, oftentimes, been trading at a premium of $10/BTC higher than the other major exchanges around the world. With China driving such an increase in the bitcoin price, many have been speculating that it could be driven by capital controls. In China, the law stipulates....
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The price of Bitcoin in China went past $990 this afternoon, as Chinese investors continued to push high volumes in local exchanges. Most investors at this time of the year are hoping to evade capital controls and circumnavigate cash restrictions, as noted by Holger Zschaepitz, financial author and editor of Welt. Further yuan devaluation and tightening of capital controls. Analysts revealed that Bitcoin hit record high volumes this past week, which ultimately led to its price rally and pushed the price of Bitcoin to increase by over 20 percent. Zero Hedge suggested that Chinese investors....
China has stepped up yet another round of capital controls. It's central bank has just suspended some foreign exchange related services of several foreign banks. How will it impact the business of local Bitcoin exchanges and the overall bitcoin market? The Chinese government hopes to stop ongoing capital outflows, mostly related to the depreciating yuan currency. Only a few months ago the government lowered withdrawal limits for credit cards. Besides the obvious reasons for every fiat currency being inflated, after its recent entry into the global IMF reserve currency club, China needs to....
It is likely the recent Bitcoin price surge attracted a lot of attention from the Chinese government. There has been a lot of speculation regarding Chinese investors buying Bitcoin to hedge against the declining Yuan. China has always been the driving force behind Bitcoin, as cryptocurrency is largely unregulated in the country. That situation is coming to change, as the country is looking to impose their version of capital controls on Bitcoin. It was only a matter of time until the government started paying close attention to this trading market. However, it remains to be seen how....
That said, the Chinese government wants to crack down on Bitcoin-related capital outflows. Bitcoin has always been of keen interest to the Chinese crowd. Most people in China see cryptocurrency as can investment vehicle and use it for high-frequency trading. But with the current economic turmoil in the country, Bitcoin is a way to circumvent capital controls. Singapore-based newspaper The Straits Times seems to agree with this sentiment, as they dedicated an entire article to Bitcoin. The Chinese government has to address many different problems at the same time. One of their biggest....
Many have speculated that the recent increase in the price of bitcoin ($542 USD on Bitfinex at time of publication) can be traced to China, where Bitcoin trading has doubled on some exchanges in the last four days as Chinese investors respond to a recent currency devaluation, and look for ways to avoid the government’s stringent capital controls. China’s economy has been flatlining for some time now. That and the strengthening U.S. dollar prompted the People's Bank of China to devalue the yuan by 0.45 percent last Friday to its lowest level since February 2011. New Interest in Bitcoin.....