Could China’s Capital Flight Boost Bitcoin? 📈
China experienced a record-high capital #outflow of $49 billion in August, the most in nearly eight years, leading to discussions about its potential impact on Bitcoin and cryptocurrencies.
Experts suggest that Bitcoin might witness significant investments from Chinese #investors due to the weakening Chinese yuan and economic uncertainties.
The USD/CNY exchange rate is at a 17-year high due to the U.S. economy's strength and China's weak growth, prompting investors to seek opportunities outside of China, possibly turning to crypto as one of the few viable options.
#BitMEX co-founder Arthur Hayes also hints at the possibility of Chinese capital flowing into Bitcoin. However, crypto analyst Edward Engel believes that the impact on Bitcoin may not be as significant as it was in 2017-2018, as China has become more adept at preventing capital flight.
Nevertheless, some methods like using domestic electricity for crypto mining or over-the-counter trading for Tether via Tron may still enable Chinese capital to enter the crypto market.
