When Bitcoin goes up, two things happen. Firstly, the markets tend to follow suit (eventually) and secondly, people look for a reason why. Disclaimer - the same happens when Bitcoin declines too, basically, everyone wants to know not what Bitcoin is doing, but why Bitcoin is doing. As a result of this, we have seen a few reports that are blaming the recent Bitcoin surge on a number of different things, including ETFs and various institutional investments. According to a new report from Ethereum World News however, another factor contributing to a rise in Bitcoin, could be down to a recent decline in the Chinese FIAT currency. Clem Chambers, an entrepreneur and author is alleged to have spoken out stating that the current economic climate in China could be influencing a rise in Bitcoin, according to Ethereum World News, Chambers has told Forbes:
“What caused the sudden unexplained spike is now clear to me. It is [the] Chinese devaluation, the insider reaction to imminent, planned, significant and perhaps rolling Chinese currency devaluation that set off this rally. It was a group of insiders buying bitcoin for Chinese yuan before the devaluation that took place two days later struck. This devaluation process has been going on for weeks, but it accelerated last week.”Much of this seems to be down to tensions between the United States and China. As this escalates and as it impacts the economy, Bitcoin, Chambers believes, will come into its own, proving its value and becoming a standard currency for those with some form of wealth. In the words of Chambers:
“If the trade wars go into meltdown, then bitcoin will ‘moon’ because huge amounts of Chinese currency will be swapped for BTC as the yuan-denominated super-rich move to be hedged from the wealth privations of devaluation. Bitcoin, not gold, is and will be the asset they will run to first.”See the full article for yourself, here. Chambers speaks with great authority and of course, what he says is indeed likely to have influenced the price of Bitcoin. We already know that political tensions alone can impact the markets, so, when politics begins to affect FIAT economies too, it is likely that crypto will benefit. People want to store their money somewhere and therefore, cryptocurrency becomes a more attractive proposition. Overall, there isn’t just one lone entity affecting the markets, movements are the result of a number of different influencing factors, such is the volatility of the markets and such is the beauty of the industry we immerse ourselves in. Regardless of all of this, Bitcoin is up, enjoy it.