Bitcoin trader? Why you NEED to watch the USDCNH chart.
Let us face it. A lot of volume in Bitcoin and cryptos was Chinese money. Why?
In China, to be a retail trader you need government approval. However, since the crypto markets are decentralized, Chinese retail traders could open retail trading accounts without needing government approval. Hence the large Chinese volume. They say in the big Bitcoin run up to 20k, 90% of that volume was Chinese.
The CCP banned Bitcoin, which coincides with the large sell off. Think about it. If the US government came out banning Bitcoin and other crypto's, many average Joe retail traders and crypto investors would dump their crypto's. They wouldn't want to face the penalties. There would be a small amount of people who would still hold their crypto, sticking it to the man.
Ironically, many reports have come out saying that the CCP elite members actually USE Bitcoin. However, they do so when the Yuan is about to undergo a devaluation. Kyle Bass has spoken in depth about this.
So why watch USDCNH? When we see the Yuan depreciate, it will be Bitcoin positive.
As you can see from the chart, the 7.00 zone is very important. The PBOC has said they will protect this level, but I believe they will not be able to due to macro and geopolitical reasons... check out my post on the US Dollar linked below.
If we see this 7.00 zone taken out, then Bitcoin will see a spike higher.
Another aspect is that Chinese money is using Bitcoin to get money out of the country...however this is mainly occurring in Hong Kong now. Mainland China is coming down hard on Hong Kong (mainly because Mainland China exports their products from Hong Kong now...thereby avoiding US tariffs because Hong Kong has no tariffs imposed on them).
A lot of wealth and citizens who have lived in Hong Kong for decades are now leaving due to the encroachment of mainland China and the inevitable removal of British Law in Hong Kong.
China is what you need to be watching for Bitcoin. Chinese money does not jump into small alt coins because of the volume. Those small coins are not worth using to move large amounts of money. Bitcoin, Ethereum and Litecoin are the ones for that.
In China, to be a retail trader you need government approval. However, since the crypto markets are decentralized, Chinese retail traders could open retail trading accounts without needing government approval. Hence the large Chinese volume. They say in the big Bitcoin run up to 20k, 90% of that volume was Chinese.
The CCP banned Bitcoin, which coincides with the large sell off. Think about it. If the US government came out banning Bitcoin and other crypto's, many average Joe retail traders and crypto investors would dump their crypto's. They wouldn't want to face the penalties. There would be a small amount of people who would still hold their crypto, sticking it to the man.
Ironically, many reports have come out saying that the CCP elite members actually USE Bitcoin. However, they do so when the Yuan is about to undergo a devaluation. Kyle Bass has spoken in depth about this.
So why watch USDCNH? When we see the Yuan depreciate, it will be Bitcoin positive.
As you can see from the chart, the 7.00 zone is very important. The PBOC has said they will protect this level, but I believe they will not be able to due to macro and geopolitical reasons... check out my post on the US Dollar linked below.
If we see this 7.00 zone taken out, then Bitcoin will see a spike higher.
Another aspect is that Chinese money is using Bitcoin to get money out of the country...however this is mainly occurring in Hong Kong now. Mainland China is coming down hard on Hong Kong (mainly because Mainland China exports their products from Hong Kong now...thereby avoiding US tariffs because Hong Kong has no tariffs imposed on them).
A lot of wealth and citizens who have lived in Hong Kong for decades are now leaving due to the encroachment of mainland China and the inevitable removal of British Law in Hong Kong.
China is what you need to be watching for Bitcoin. Chinese money does not jump into small alt coins because of the volume. Those small coins are not worth using to move large amounts of money. Bitcoin, Ethereum and Litecoin are the ones for that.
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