Bitcoin Price Volatility Returns due to Chinese RMB Devaluation

Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term has finally delivered some good opportunities for long term investors and short term traders. After being stuck for a while in a range around the $610 price level, Bitcoin jumped as high as over $640 or about 5% in the last couple of days.

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Assumed by most market watchers and cryptocurrency analysts to be the main driver for this Bitcoin rally is the collapse of the China's currency. On Monday the yuan (RMB) fell to a new six-year record low against the USD which raised investors' fears that the Chinese government will not set a floor as it has in the past, perhaps as a way of helping struggling exporters remain competitive in a weak global environment.

While we have recently seen other major moves in the FX market, such as turbulence with the GBP and the South African rand, the major factor here is considered to be RMB devaluation due to the sheer dominance of the Chinese in the Bitcoin market. Charles Hayter, the CEO of CryptoCompare.com, explains: “China's central bank lack of support the Yuan is prompting traders to rush headlong for cover. Bitcoin is shelter from the storm.”