In the expert environment, the number of supporters of such a point of view is growing that further depreciation of the Chinese currency will force traders to massively switch to bitcoin.
Among such analysts, FXCoin strategist Yasuo Matsuda stands out. In his opinion, a surge in cryptocurrency investments is expected in the Chinese market this year.
Recall that at the end of last week, the yuan fell to its lowest level since 2008. The currency of the Middle Kingdom is losing ground due to the threat of a new conflict between the United States and China. Washington threatens to impose sanctions against Beijing if the latter intensifies repression in relations between residents of Hong Kong.
Yasuo Matsuda points to another factor that will force Chinese traders to look for alternative instruments. This factor is the weakening of business activity in China in connection with the COVID-19 pandemic.
The expert stated: "When the yuan falls, it encourages Chinese people to move their assets abroad because their value is reduced in dollar terms. That leads to a further depreciation of the renminbi. Since the regulation of capital flows in China is very stringent, many will go to bitcoin. BTC is positioned as a resource to ensure the safe movement of capital".