China Yuan Devaluation Following Brexit; More Opportunities for Bitcoin?
Unlike other “traditional investments’ Bitcoin operates in a completely different matter. Short-term gains or losses are not guaranteed, making it less appealing to investors. Hardly anyone will be surprised to hear the Chinese Yuan continues its devaluation in the wake of the Brexit. In fact, the Chinese Premier mentioned how the entire global financial could collapse as a result of this outcome. At the same time, this news opens more opportunities for Bitcoin, assuming people are willing to take the risk. Individuals who have been following financial news over the past few months will....
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Foreign currency prices have an intimate impact on financial markets and this week, China's yuan devaluation came as a reminder of how fragile the Chinese economy is at the moment. A significant financial crisis is developing on the country; it seems that the model of economic growth has reached its natural end. Similar to what happened in Greece, Chinese citizens seem to be buying bitcoin in order to preserve the value of their cash. Many already perceive the unexpectedly sharp devaluation of China's yuan as an opportunity for bitcoin. As the dollar and yuan move further apart, bitcoin....
Rectifying this situation will not be an easy feat either. Further devaluing the Yuan seems the only plausible scenario, although it is impossible to predict the outcome. The recent Bitcoin price surge is mostly driven by Chinese traders. Increasing fear of capital outflows and the ongoing Yuan devaluation make Bitcoin a viable alternative investment opportunity. It is evident the Chinese government is running out of ideas to stabilize the economy. In fact, it appears the Yuan will continue to slide down a slippery slope. To be more precise, it seems the increasing Bitcoin demand hints at....
In the previous weeks, macroeconomic uncertainty has spurred investment interest in bitcoin, but is this likely to continue? As we covered last week in our H1 2016's market analysis, prices have pushed up 50% from 1st January, and two key drivers were, at least according to market observers, uncertainty in China (where the yuan has been devalued) and Europe (where the UK voted to leave the EU in an event known as the 'Brexit'). Looking ahead to the second half of the year, it remains unclear, however, if these events will continue to be factors impacting digital currency price movements.....
The devaluation of the Chinese yuan and the financial impact of Brexit are long-term factors which will determine the health of the economies of China and the UK. Thus, investors will continue to seek for alternative highly liquid assets to avoid being involved in a financial turmoil, which will increase the demand for Bitcoin and ultimately, its price. Economic instability is good for Bitcoin. Financial experts and analysts have emphasized the indirect correlation between the demand for Bitcoin and international economic instability for quite some time. In early 2016 for instance,....
Another bitcoin price hike is in the books following the unexpected Brexit. At press time, bitcoin has started a recovery and is now hovering around $655 USD. Bitcoin and Brexit. Bitcoin was doing quite well last week, having surpassed the $700 without much trouble, but ironically, things took quite a plunge at the same time that the UK voted to leave the EU. Actually, the two appear to be directly linked. The Brexit is affecting trading across the globe, even if they don’t seem related. For example, bitcoin trading is at its highest in China. At present, the country is responsible for....