Bitcoin (BTC) price is once again surging, currently above the $8,000 mark, and likely to stay up this time. In fact, if BitMEX CEO, Arthur Hayes, is right — BTC might surge way higher in the near future.
Bitcoin and Yuan: Are they connected?
Bitcoin is known to affect nearly every other cryptocurrency, dictating their general behavior most of the time. However, many have started noticing recently that Bitcoin itself tends to react depending on the behavior of other currencies. The most notable one is the Chinese Yuan, which is continuing to drop.
Yuan has been struggling ever since US President Donald Trump announced tariff charges on China’s imports. As a consequence, it appears that many in China have opted to switch to BTC. This can be concluded by the fact that the coin started rallying after the news, and is seeing more and more usage as Yuan continues to drop.
As mentioned, this has caused many to start noticing patterns between the two currencies, as well as an inverse correlation. Blockchain.com’s Garrick Hileman, for example, recently said that there are no certainties that BTC value will keep surging due to trade tensions. However, with all of this in mind, it does seem like a possibility. After all, the charts do not lie, as can be seen below.
Maybe just a coincidence but you tell me
Bitcoin is winning the trade war while China and US is a lose-lose pic.twitter.com/8FmVcaHjjh
— Dovey Wan 🗝 🦖 (@DoveyWan) May 13, 2019
The US and China trade tensions affecting Bitcoin
This is where Arthur Hayes comes in, with his recent ‘Crypto Trader Digest,’ where he points out that the issues that China and the US are going through might help the demand for BTC skyrocket. Hayes also notes that the People’s Bank of China recently decided to tighten credit lines, which only worsens Yuan’s downfall.
With Yuan losing value, people are beginning to seek out an alternative — one that provides greater access and possibilities, and that cannot be controlled by banks or governments. Obviously, Bitcoin (BTC) sits at the very top of that list, followed by various altcoins, some of which are more popular in China than others.
While it is good that the people of China have this alternative, the consequences experienced by the crypto market might be massive. Many are predicting another major crypto rally, similar to the one that eventually took Bitcoin to the value of $20,000. Only now, millions upon millions of people in China will be buying the coins. This can lead to BTC breaking all previous records, but also to new altcoins rising to the top.
Not only that but in the event that all of this comes to pass, China’s participation might help further drive the mass adoption that the entire crypto community is waiting.
While Hayes is far from being the only one who thinks this might happen, there are also many who disagree. Alex Kruger, for example, points out that BTC is still subject to manipulation, and that its growth has nothing to do with the US/China situation. The macro analyst seems to believe that all the analysis connecting BTC performance to world events are just wishful thinking, and people desperately trying to find connections.
As of yet, there is no definitive answer as to who is right about the situation. It simply remains to be seen what might happen in the following months. After all, everything is possible in the world of crypto.