Observers have the impression that China is buying up a lot of bitcoins and gold right now. The crisis in the stock market began in July, and a massive devaluation of the national currency occurred in August and September.
The commission on foreign exchange control ordered to check financial institutions and prevent capital outflow. Currency wars in the region led to massive losses of capital on “black Monday”, from which a very difficult financial week began for China.
This caused interest in alternative currencies and the purchase volume of bitcoins in China increased. The Chinese exchanges led to an appreciation on the US stock exchanges. The purchase of Bitcoin, gold and precious metals is not really something new for China. The volume of gold reserves of the country since 2009 has grown by 60%. Banks regulate this area to help stop the devaluation of the yuan. The main task of financiers is to reduce volatility, curb capital outflow and limit pressure on the yuan.
The volume of trading in the CNY / BTC pair last week grew exponentially and the trading volume reached 1 million BTC per day. The volume and price of the largest Chinese stock exchange Huobi, higher than most of the average American and British crypto-exchange exchanges, combined. Trade in bitcoins for Yuan takes more and more of the market.
Most likely, because of cheaper electricity, zero trade duties and a serious devaluation of the country’s currency in the past few years. Analysts at Goldman Sachs, led by Peter Oppenheimer, say that the third wave of the economic crisis occurs on a global scale. The analyst believes that this economic shift is characterized by stagnation of China’s growth and commodity minima around the world.
For the first week of July, the Chinese stock market within three weeks of falling is losing 2.36 trillion US dollars of market value. The indices of the Shanghai Composite and Shenzhen Composite sank about 30%, which led to a “month of fear” in the global economy.
Fear of impending inflation pushes to the transition to other international sites. However, the People’s Bank of China is making it increasingly difficult to acquire traditional shares, bonds and other assets. Because of this, the volume of transactions with Bitcoin in China is growing.
The three largest exchanges trading bitcoins for Chinese yuan have a volume close to 1 million bitcoins per day. Goldman Sachs reported that 80% of Bitcoin transactions fall on the yuan trade.
In general, the volumes on the Chinese exchanges show growth in the digital currency area. Numbers on different sites are different, but undoubtedly the figure is increasing. The devaluation of the Chinese currency is very real, and the stock market of the region regularly shakes.
Movement to alternative markets has already been proven in countries such as Greece. Bitcoin has become a safe haven, the same as gold and silver, which are bought with pleasure by Chinese buyers. Continued devaluation of the renminbi will allow Bitcoin to come to large investors