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AIUI there's been a lot of speculation lately that the price of bitcoin was propped up by Chinese investors, so if bitcoin drops 20% at the same time that the C
by eridius 10y ago
AIUI there's been a lot of speculation lately that the price of bitcoin was propped up by Chinese investors, so if bitcoin drops 20% at the same time that the Chinese yuan soars, I don't think it's much of a leap to speculate that the former was caused by the latter.
- 21 10y agoI have a question for you. Have you ever traded? This is not meant as an insult. Just for scale, yuan soared 1% today, bitcoin dropped 20%. Yes, I know there is leverage in the forex markets. But more importantly, compared to the yuan market, bitcoin is a spit in the bucket ($300 bln yuan daily volume vs whatever the bitcoin daily volume is) What you're (or the article) is basically saying is that the investors which were into bitcoin wet themselves today by the amazing yuan soar and suddenly decided to move theirs money from bitcoin to the yuan, even if these two are completely different financial things (even if both are named currencies), and one who invests into bitcoin does so for completely different reasons than one investing into the yuan.
- patmcguire 10y agoThe other option is that the price of bitcoin is largely propped up by Chinese investors evading capital controls or using it trade yuan for other currencies at non-official rates. If bitcoin is largely driven by avoiding government controls changes around it could have big effects.