The fall of the Chinese Renminbi relative to the dollar may have a positive effect on the value of bitcoin. This opinion was expressed by partner Placeholder Capital Chris Burniske.
If China’s $CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat (pictured below), where $BTC strength coincided with yuan weakness. https://t.co/ISVJAZMX5O pic.twitter.com/VApfxe1SFw
— Chris Burniske (@cburniske) May 22, 2020
The analyst pointed to a correlation between the weakening of the yuan and rising BTC. The graph shows that over the past five years this pattern was interrupted only a few times.
Bernanke highlights 2015 and 2016, when the weakening of the yuan has reached a peak. In his opinion, the third peak can be reached in the near future, which would entail the strengthening of bitcoin.
The head Blockware Solutions Matt D'souza shared the tweet Bernancke and pointed to the first signs of the weakening of the yuan. He added that bitcoin is already responsive:
USD/CNY is breaking out and it appears #Bitcoin is responding. This could get interesting. Capital Flight/Store of Value.
.@PeterLBrandt @Upticken @NicTrades @RaoulGMI @ToneVays @kyletorpey @CubbieBears @PrestonPysh @100trillionUSD @twobitidiot @cburniske @TuurDemeester https://t.co/V0qLWFigvl pic.twitter.com/kWn0WFCf7X
— Matt D’Souza, CPA (@mjdsouza2) May 22, 2020
In September of last year on an inverse correlation between bitcoin and the yuan is indicated to Bloomberg. Similar pattern noticed cryptocurrency CEO of Circle Jeremy Allair.