How Chinese Yuan, Capital Flight Influence Bitcoin Price
The trading volume coming out of China suggests a correlation with the price of Bitcoin. The influence of the Chinese yuan has shown itself especially in the second half of 2016. The year 2016 has seen the price of Bitcoin exhibit some significant activity. In its overall trend, the price of the world’s number one cryptocurrency has risen significantly within the year. Recently, a closer look at their behavior reveals a developing correlation between the price of Bitcoin and the value of the Chinese yuan. Financial data coming out of China in recent times has also been seen to cause a....
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But there is more, as financial institutions will have to report international transfers exceeding 200,00 yuan. China has been imposing various degrees of curbing capital outflow throughout 2016. Not all of these attempts have been successful, but the government has come up with a new plan. Foreign currency purchases will be restricted even further moving forward. In doing so, the government aims to reduce the amount of money leaving the Chinese economy. Converting Yuan to foreign currency will become more difficult for everyone living in China. Additional information needs to be provided....
More and more mainstream attention focuses on the potential use of bitcoin for capital flight in China — while blockchain breaks new ground. China Capital Flight in BTC ‘Makes Sense’. As growth in the world’s largest bitcoin-trading country slows, correlations in the USD price of the Yuan and bitcoin are leading to suggestions that investors are using....
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....
The bigger question is how consumers and enterprises can protect against this volatility in the coming years. The Chinese Yuan has been a topic of multiple debates in the past few months. After months of deliberate devaluation, things are still looking very bleak for the future. In fact, it appears the pessimism surrounding this national currency is only growing worse every month. Such an uncertain future can push even more people to Bitcoin and cryptocurrency next year. China is not doing all that well in the financial department as of late. Further depreciation of the yuan is expected in....
China has stepped up controls over transactions in a bid to reduce capital outflow amid a waning yuan – yet bitcoin activity continues. China: More Barriers To Fiat Transactions. The country’s regulator, the State Administration of Foreign Exchange (SAFE) in the past week announced spot inspections of any outgoing transaction of over $5 million.....