The price of bitcoin has been accelerating in the last few days. At two o’clock in the morning the $ 11,000 limit was passed. And from then on it went very quickly. In the next three hours, the value rose to $ 11,700. Bitcoin has thus made up for much of the decline in July. Is the increase due to news from China and America?
Time of rise does not have to be a coincidence
Earlier we wrote about a Longhash study, it appears that most bitcoin trading takes place between two and three o’clock at night. And somewhere that is not a crazy time either. The time corresponds to the start of the evening in North America and the start of the working day in large parts of Asia. It is possible that many Americans and Asians were trading at the same time.
Escalation in trade negotiations China and US the cause?
Peter Tchir (former Deutsche Bank executive director) noticed that bitcoin reacts to news from America and China. Both countries are currently engaged in rather heated trade negotiations. Although, discussions, it now appears to be a real trade war.
The Chinese central bank lowered the value of the national currency last night (Dutch time). For the first time in more than ten years, the currency has fallen below the limit of seven renminbi per US dollar. A weaker currency makes Chinese products cheaper abroad. And that stimulates exports.
This decision is not completely out of the blue. Last Thursday, US President Donald Trump announced the expansion of US import tariffs. There will be an additional tax of ten percent on 300 billion dollars in Chinese exports. This ensures that almost all Chinese containers are taxed to the US.
Investors are increasingly losing faith in trade negotiations. Asian stock indices lose on average more than two percent. According to Tijd.be, this ensures a flight to safe harbors such as gold and the Japanese yen.
It is an assumption, but it may also be possible that Chinese and investors generally seek their flight in bitcoin. Trade negotiations between the United States have resumed since Tuesday 30 July. And in this period bitcoin has increased in value by more than 26 percent. Coincidence?
Protests in Hong Kong may also give bitcoin a boost
Add to that the fact that there have been large-scale protests in Hong Kong for months. Hong Kong is a semi-autonomous control of China, south of the country. The reason for the protests is the possible introduction of a new law whereby criminals can be deported to China. That law is now in the refrigerator, but protesters want it to be definitively canceled.
The demonstrations actually go beyond this law. Protesters are now more about the influence that China has over Hong Kong in general.
According to PlanB, the situation in China and Hong Kong can cause a large-scale outflow of money, in Chinese renminbi but also in the Hong Kong dollar.
China / Hong Kong situation is Cyprus ^ 2: mass capital exodus (think trillions $). China devaluating CNH> 7 $ #bitcoin ???
– PlanB (@ 100trillionUSD) August 5, 2019
It is only difficult for Chinese people to make large bank transfers abroad. In China you can transfer abroad up to a maximum of $ 50,000 per person per year. A user responds to PlanB’s tweet, according to him, bitcoin is used to transfer money abroad outside of this legislation.
Does the situation in China, Hong Kong and the United States affect the course? Or can the price movement of bitcoin be explained from the technical analysis? Anyway, for bitcoin it looks a lot better than a few weeks ago.
Related posts:
Why do cryptocurrency Exist – Institutions 
Bitcoin and independent property rights 
NASDAQ on market manipulation: Everyone is now talking about regulating bitcoin and cryptocurrency 
Pilot Porsche on Ethereum blockchain to trace provenance materials 
Xfers from Singapore is going to use blockchain Zilliqa 
Make your own tokens with the Guarda wallet
