$CNYUSD responsible for rise in $BTCUSD ??

22 0 0
I recently read an article of Reuters explaining that the recent rise in $BTCUSD has the $CNYUSD sell off to thank.

But out of curiosity, I wonder what percentage of the $BTCUSD rally was caused by Chinese traders buying into Bitcoin . After all, most Chinese DON'T invest their money into the market. Perhaps the $BTCUSD rally is caused by traders buying because they think other traders (particularly the Chinese) will buy. Thus the current Bitcoin rally could be explained as a "self fulfilling loop"

Finance minister Lou Jiwei says that china has no interest to devalue it's currency any further, and has attributed these conversations to media hype.

The discussion of a June rate hike in the US may be what is fueling speculation on a $CNYUSD devaluation. But recent economic indicators would suggest the FOMC may approach this month's meeting with caution. Although home prices are rising, a sign of strength, the recent employment numbers were soft and in part caused by decreasing participation in the labor market, not a sign a sign of strength. As we approach the FOMC announcement, if economic indicators continue to produce soft numbers, we should not expect a rate hike. This in turn should fuel a rebound in $CNYUSD, which may cause a $BTCUSD sell off.

At this point, it is anyone's guess how high the $BTCUSD rally will go. But if the recent rally was indeed fueled by speculation of a $CNYUSD devaluation, which is in turn fueled by fed rate hike speculation, then it would not be surprising if we begin to see a selloff in $BTCUSD following more weak economic indicators.
Ideas Scripts Chart
United States
United Kingdom
Home Stock Screener Forex Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out