According to a recent report from Bloomberg, as the Chinese yuan keeps collapsing with China and the United States back on the trade war track, the price of Bitcoin, the world’s premier digital asset, is going up.
The most likely explanation for this phenomenon is that investors are looking to hedge their risks against the Chinese currency most recent fall, and BTC represents one of the safest resources to protect against any potential losses.
Back Over $10,000
In recent days, the price of Bitcoin slipped below the $10,000 threshold and stayed that way for a few days. However, it has since recovered and surpassed the crucial barrier. At the moment of writing this article, the asset was exchanging hands at $10,523.80.
Bloomberg published an analysis in which it explained that Asian investors had increased their BTC holdings in several big exchanges such as Huobi, in the wake of the yuan fall. Most of those investors are Chinese.
According to Dr. Hileman, from the London School of Economics and also the director of Blockchain.com’s research staff, there is evidence to back the claim that people in Asia are acquiring more BTC assets when compared to other locations.
Hileman observed that the urge of the Chinese to acquire Bitcoin could be seen in the premium price they pay in platforms like Huobi that primarily cater to Chinese.
A Popular Asset in China
It is no secret that Bitcoin’s popularity in China has been off the charts ever since a local court decided in the summer that BTC should be considered a virtual asset. However, it is also clear that the effects of the trade war have contributed to the increased BTC acquisition by the Chinese, as they want to hedge their risks.
Meanwhile, another possible reason for the increase of Bitcoin’s price is, according to specialists in the matter, Bakkt’s announcement of the launch of Bitcoin futures trade that will start on September 23.
American newspaper reported yesterday that Bakkt had started its crypto custody service, named “Bakkt Warehouse,” in the wake of the BTC futures launch.
All of the reasons discussed above have prompted investors to buy Bitcoin with PayPal, credit cards, or through other methods and platforms. Bitcoin online trading has seen a recent increase, and the China-USA trade war may be the primary reason.