Shocking! ‘Bitcoin Wins the Trade War’ as Chinese Investors Pile In

It is widely believed that bitcoin’s remarkable rally is a result of booming institutional interest in the cryptocurrency, as investors are looking for alternative asset classes to park their funds at a time when the stock market is in turmoil and the global economy is on edge.But it looks like institutional buying isn’t the only catalyst driving bitcoin’s price.

The Chinese are reportedly piling into bitcoin, believing it to be a safe investment at a time when the yuan is taking a hit thanks to the U.S.-China trade war.In a period where: —political tensions escalate between US and China, —global equity markets fall sharply—VIX largest spike in many months—global yield curves flatten/invert#bitcoin has RISEN and >$6,000Crypto showing its value as an uncorrelated asset.— Thomas Lee (@fundstrat) May 9, 2019China Suddenly Loves BitcoinThe Chinese government has a hostile approach toward bitcoin, delivering blow after blow to the cryptocurrency industry in general.

(@DoveyWan) May 13, 2019Traders Confirm the Chinese Are Buying CryptoThe Chinese government has stringent measures in place to prevent the dumping of yuan, limiting the yuan’s outflow to just $50,000 a year.But bitcoin gives them a way to circumvent that limit despite a ban on cryptocurrency exchanges, with the help of over-the-counter dealers and peer-to-peer exchanges such as LocalBitcoins.According to Philippe Bekhazi, CEO of crypto trading firm XBTO cited in Forbes:“I’ve talked to a bunch of traders on the ground in Hong Kong.

There’s a booming business in stablecoins because people are getting money out of China and Hong Kong.”Not surprisingly, weekly bitcoin volumes on LocalBitcoins have spiked.