Bitcoin Falls as Yuan Strengthens
Where it goes next is anyone’s guess, but besides mere speculation, the rise and fall might also be due to Yuan’s fall and now slight rise: What we have here is bitcoin and CNY moving in tandem during spring and summer. CNY then falls further, with USD’s value against it up and up, but bitcoin doesn’t follow presumably because it had already risen and gone too far or who knows why. Now for this month CNY has strengthened a bit, with bitcoin so falling somewhat, but China’s economy is weakening and considerably.China’s growth has been falling, but more importantly, its inflation is rising significantly.
The big jump in October stands out, but even more stands out its rise from the beginning of the year at 1.5% to now 3.8%. That means real growth in China is at just 2.2%, far lower than the 5% plus they’re used to. Part of that is because arguably they’ve devalued too much, but also perhaps because the low hanging fruits have been caught already, so there might not be too much more room for productivity to increase the economy. There’s also the tariffs, with a trade deal apparently nearing an agreement , but China might be falling to the same trap as Japan before them and the west now, the trap of monetization.
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https://www.trustnodes.com/2019/11/14/bitcoin-falls-as-yuan-strengthens
David Http://markethive.com/david-ogden
