Bitcoin Price Decreasing As Chinese Yuan Gained on USD: Coincidence or Possible Link?
The CNY/USD trading pair appears to have a pronounced effect on Bitcoin’s fortunes, a dip in both occurring almost simultaneously.
Bitcoin’s recent decrease in value occurred almost simultaneously with the Chinese yuan gaining ground on the US dollar.
"In statistics republished to Twitter by ARK Blockchain product lead and frequent Bitcoin pundit Chris Burniske, a dip in USD/CNY rates appeared to have a knock-on effect for BTC/USD."
Trading at just above 6.89 CNY to the dollar, a sudden dip to just below 6.88 around midnight UTC April 13 coincided with a BTC/USD fall from $1215 to $1170, before correcting to around $1190.
Highlighting the findings, Burniske called the phenomenon an “interesting observation.”
The Chinese market is preparing to stage a comeback as an officially licensed exchange trading is made available. A halt to trading in February saw volumes shrink massively for the next two months, as highlighted in a recent report published by ‘National Committee of Experts on Internet Financial Security Tech.’
The local news resource cnLedger highlighted these volumes from the short report, along with a diagram showing the market share of various Chinese exchanges.
Perhaps predictably, BTCChina, Huobi and Okcoin held the majority market dominance.