Analysts Say China's Yuan Drop Could Trigger Bitcoin's Rise
China is facing market woes as the country's yuan, its currency, has fallen to a low of 3.22 yuan per US dollar. However, LondonCryptoClub analysts say this could be a positive sentiment for the rise in Bitcoin (BTC) prices and repeat the history of 2015.
This is because in 2015, China devalued the yuan which caused Bitcoin to experience a drastic increase and was traded more than three times. Experts consider this event as a potential rally for Bitcoin.
Meanwhile, China looks like it is letting the yuan fall and not defending it. This could cause capital outflows from China and seek other investment assets as a rescue, one of which is Bitcoin which will be the target.
Even so, the People's Bank of China (PBOC), China's central bank, is trying to stabilize its currency by warning fund managers not to chase bonds in preparation for new stimulus efforts to revive the economy.