CONTACT US

For any general inquiries, please fill in the following contact form:

Our websites never use cookies or other technologies such as pixel tags and web beacons. We only retain personal information when the contact section of our websites is filled. To proceed and get in touch with us through this format please read our Terms & Conditions, updated to be in line with the provisions of the GDPR, and tick this box to consent in us retaining the above information for contacting purposes only.

SUBMIT

Bitcoin set for best week since June on strong Chinese demand

Bitcoin set for best week since June on strong Chinese demand

A depreciating Chinese currency has boosted demand for the cryptocurrency bitcoin as investors sought protection from the falling yuan.

Bitcoin rose almost nine percent through the week and was trading at $688.40 as of 14:17 GMT on Friday. That’s the biggest gain since June when its value rose with the UK’s vote to leave the European Union. Investors turned to the digital currency as a safe haven from the British pound.

With the yuan hitting a six-year low against the US dollar on Monday, Chinese investors rushed to buy bitcoin. Experts say the Chinese are using the digital currency as a way to circumvent capital controls.

“There is a premium in bitcoin pricing in China as a hedge against the yuan," Jack Liu, the Hong Kong-based chief strategy officer at OKCoin told Bloomberg. “Strength is likely to carry into year-end."

China accounts for about 90 percent of all bitcoin trading on exchanges. The country has strict capital controls, which makes it difficult for the Chinese to convert the yuan into foreign currency, and limits the amount of cash investors can move abroad.

Some analysts say the price of bitcoin will continue to rise as more devaluations are expected from the Chinese government.

Bitcoin could rise above $700 before the end of the year due to the strong Chinese demand and unexpected events, such as Donald Trump winning the US presidency, according to Aurélien Menant, chief executive officer of Gatecoin in Hong Kong.

“The outcome of the US elections is likely to have an impact, as would the consequence of a Fed rate hike," said Menant. “Further yuan devaluation and interest among Chinese investors will continue the momentum," he added.

The price of bitcoin plunged to as low as $408 in August after the hacking of the Hong Kong-based digital currency exchange Bitfinex. Over $72 million worth of bitcoin were stolen following a cyber-attack on the company’s systems.

https://www.rt.com/business/364562-bitcoin-biggest-weekly-rise/

MORE NEWS

Azerbaijani banker’s £1m diamond ring seized in ‘dirty money’ inquiry

Azerbaijani banker’s £1m diamond ring seized in ‘dirty money’ inquiry
Ring bought by Jahangir Hajiyev from Harrods department store confiscated by National Crime Agency.Police have seized a Cartier diamond ring...

Brexit deal: Theresa May suffers historic defeat in vote as Tories turn against her

Brexit deal: Theresa May suffers historic defeat in vote as Tories turn against her
Theresa May has pledged to face down a vote of no confidence in her government, after her Brexit deal was shot down by MPs in the ...

'We should deliver for the British people': Theresa May calls on rebel MPs to ...

'We should deliver for the British people': Theresa May calls on rebel MPs to back her vision for Brexit in key vote TODAY... or face handing the keys of Number 10 to Jeremy Corbyn
Theresa May has warned Tory rebels they risk a Jeremy Corbyn government and the break-up of the UK if they reject her Brexit deal in ...

Who's behind the blog

Who's behind the blog

SOCIAL MEDIA