Analysts are predicting Chinese investors will continue pouring capital into Bitcoin as they attempt to escape the impacts of the Chinese Government’s devaluation of the Yuan.
Over the past week, the Chinese Yuan weakened to its lowest level against the US Dollar in more than a decade, sparking fears China’s ongoing trade war with the US could escalate.
But the tense economic climate and the devaluation could be a blessing in disguise for the Bitcoin price according to some analysts.
Trading View’s top-ranked Bitcoin analyst, Jacob Canfield, believes the most recent Bitcoin breakout could have been a result of Chinese residents using Bitcoin to move money out of the country.
“We are currently seeing a massive rally for the US Dollar verse the Chinese Yuan,” he said in a Twitter post.
“Due to very strict capital restrictions in China, one of the biggest ways to move your money is through Bitcoin… Big Macro Event Here.”
Is #Bitcoin breaking out on money flowing out of China?
We are currently seeing a massive rally for the US Dollar verse the Chinese Yuan.
Due to **VERY STRICT** capital restrictions in China, one of the biggest ways to move your money is through Bitcoin.
Big Macro Event Here pic.twitter.com/p1ThvZg2MP
— Jacob Canfield (@JacobCanfield) August 5, 2019
Bitcoin web searches on the rise in China
Over the past few months, researchers have noted a sharp rise in the number of searches for ‘Bitcoin’ on Baidu, China’s equivalent to Google.
In early April, when Bitcoin’s price surged 25 percent in just a few days, Bitcoin topped Baidu’s ‘hottest emerging keyword’ list.
In a series of twitter posts, prominent economist and trader, Alex Kruger recently monitored Bitcoin search statistics in China.
“There’s been a lot of talk about how China has been the driver behind Bitcoin’s move up since the first week of May. So I decided to look into Bitcoin Baidu trends (China’s Google),” he wrote.
“China’s bitcoin popularity has definitively been on the rise.”
“Interest in bitcoin spiked either after price breakouts or during breakout”
Interest in bitcoin spiked either after price breakouts or during breakouts. pic.twitter.com/aMYyId5RCN
— Alex Krüger (@krugermacro) June 3, 2019