Chinese Buying Spree Boosts Bitcoin: Analysts Point to Rising Yuan Crisis
Date: 2023-09-20 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Chinese Investors Favor Bitcoin Amid Yuan Crisis and Market Weakness
CryptoBanter, in a recent YouTube video, asserted that the surge in Bitcoin's price is directly tied to the massive investments made by Chinese buyers. In his view, Chinese consumers are turning away from their depreciating national currency in favor of Bitcoin and gold. The weakening of the Chinese yuan due to a crisis in the stock market and real estate sector has accelerated this trend.
Bitcoin Price Soars in China
The Bitcoin frenzy in China has driven its price to a remarkable $32,500 per Bitcoin, with trading against USDT reaching $33,000. This valuation is significantly higher than the current global average of $27,135 per Bitcoin, creating substantial arbitrage opportunities.
September Surprises as Bitcoin Bucks the Bearish Trend
Traditionally, September has been a bearish month for Bitcoin. Many analysts predicted a sharp price drop, but this month has defied expectations by witnessing a more than 4% increase in Bitcoin's value.
DXY Index and Bitcoin Price Correlation
Analyzing past price movements, the analyst highlighted a correlation between Bitcoin's price and the U.S. Dollar Index (DXY). Whenever the DXY surpasses 105, Bitcoin's price tends to rise in tandem.
Long-Term Holders Remain Resilient
In addition, the analyst noted that the percentage of long-term Bitcoin holders has surged to 75%. Despite volatile market conditions, many long-term holders continue to accumulate cryptocurrency.
