Chinese Yuan Devaluation Fails to Fuel Bitcoin Price Rally
The connection between the Chinese yuan and the price of bitcoin appears to be weakening.
Despite assertions that macroeconomic fears in China are one factor boosting the price of bitcoin, the nation’s recent decision to lower the yuan’s currency peg by the largest amount since August notably failed to cause a significant change in the digital currency’s price this week.
Arguably almost entirely driven by long-term bullishness and sentiment, it’s become a passtime of bitcoin industry observers to attempt to correlate movements in the market with larger, macroeconomic trends, and China has become a particular point of focus given the outsized activity on local exchanges.
Still, in practice it remains to be seen whether this relationship is effective marketing or a sound indicator for traders, and this week’s events provided the latest data point in this ongoing exploration.
This post was published at Coin Desk on June 29, 2016.