China Prompts Bitcoin Boost

Crypto Markets Crank $25 Billion as Bitcoin Gets Big Boost From China

Crypto markets are pumping today as Bitcoin surges over ten percent while economic woes deepen in China. Around $25 billion has flooded back into digital asset markets powering total market capitalization back to $310 billion.

Bitcoin Boosted by Weakening Asian Currencies

BTC has remained over the five figure level for the weekend and took off on another run during Asian trading this morning. From below the $11k price level this time yesterday, BTC surged to an intraday and over three week high of $11,850 before a slight pullback.

At the time of writing BTC was holding just below $11,700 which marks a gain of almost ten percent on the day. Daily volume has surged from $14 to $21 billion and the momentum is clearly being driven by trading in Asia.

With a seventh green candle on the daily chart, BTC appears to be heading for a new high this week. Many, including Max Keiser, are confident this will happen. In a tweet over the weekend the RT anchor said that Bitcoin could hit $15,000 this week.

“I’m sensing #Bitcoin will cross $15,000 this week. Confidence in central governments, central banks, and centralized, fiat money is at a multi-decade low.”

Chinese Driving Bull Run

At the time of writing this appears to be exactly what is happening in China as the Yuan taps a ten year low against the dollar. According to reports the People’s Bank of China posted a RMB/USD daily reference rate below 7. Many are viewing this as retaliation for freshly imposed tariffs in US president Trump’s trade war.

The Chinese currency last breached the 7 level against the dollar during the global financial crisis in 2008. Co-chief of Asia rates and foreign exchange strategy at Bank of America Merrill Lynch Global Research, Claudio Piron, told the outlet:

“I think this is clearly a retaliation that in the past China has refrained from doing,”

Fearing further devaluation, it seems that the Chinese have started loading up on Bitcoin despite ongoing efforts from Beijing to ban it. BTC trading is still available via OTC and peer-to-peer outlets and the people have become quite savvy at subverting state controls and censorship in China.

Escalating tensions in Hong Kong, where protesting has continued, may have also contributed to an exodus into safer offshore investments. The Hong Kong Dollar has also fallen to a one month low against the greenback.

Altcoins have been slower to respond but some are starting to gather momentum at the moment. Ethereum has added 7% to tap $235, and Litecoin, which has just halved, has surged 11% to pass $100. Monero, NEO and Ethereum Classic are also having a good run at the time of writing.