According to analysts, this week the Bitcoin exchange rate showed a record level of correlation with the national currency of the Celestial Empire. This is believed to be because investors tend to use the digital asset as a hedging instrument amid falling renminbi values.
Another confirmation that BTC is used to hedge risks – against the background of the fall of the yuan, an increase in the price of BTC was observed on Asian exchanges. Researcher Garrick Haileman noted that the confirmation of this assumption is the increase in the value of the digital asset on the Huobi platform, the users of which are mainly Chinese. The trade war that unleashes between China and the United States continues to weaken the renminbi / dollar.
However, the July court ruling that BTC is a virtual property that is subject to state protection influenced the perception of local residents of the flagship cryptocurrency, namely, strengthened the belief that BTC can act as a hedging instrument.
The correlation began to be traced, according to analysts, back in April and May, just at a time when tension was increasing between the two states. The dynamics are similar to what happened once with gold and Brent oil futures – when futures showed weakness, the value of gold increased.
