‘Chinese Buying Up Bitcoin’ Narrative ‘Very Dubious’
The narrative that China is ‘buying up bitcoin’ is very dubious, according to a local investor and Primitive founder, Dovey Wan. However, as a foil to ‘moon BTC‘, she is behind it all the way.
China Unlikely To Be ‘Loading Up’ On Bitcoin
Bitcoin’s most recent rally, along with the seemingly synchronized devaluation of the Chinese Yuan, prompted speculation that the two were linked. Could Chinese investors be fleeing the weakening Yuan and running into the open arms of BTC?
However, Dovey Wan took to Twitter to pour cold water on the suggestion, chiefly for two major reasons:
- On Chinese-centric exchanges, bitcoin is actually trading at a negative premium.
- Over The Counter (OTC) bitcoin price denominated in RMB (Yuan), is within its normal range, at a 1% premium.
"Chinese buying up Bitcoin" is a VERY dubious narrative IMO
1. Bitcoin is trading at a negative premium in Chinese centric exchanges like Huobi and Okex
2. RMB denominated OTC price is now at 1% premium, within its normal range since the bull
— Dovey Wan 🗝 🦖 (@DoveyWan) August 5, 2019
Global Financial Uncertainty Increasing
The ongoing trade war between the United States and China has caused global financial uncertainty, which can certainly help to boost the bitcoin market. But Wan feels that the capital is more likely to be coming from outside of China.
Most recently, U.S. President Donald Trump vowed to impose 10% tariffs on an additional $300 billion worth of Chinese imports. China pledged to retaliate, and the U.S. has accused it of being a ‘currency manipulator‘, following the devaluation of the Yuan yesterday.
But Wan suggests that a surer hedge against global financial uncertainty would be Tether, although this is also currently selling at a negative premium in Chinese markets.
In fact, in Yuan terms, it was gold which saw a spike in volume and prices yesterday.
But If It Gives BTC A Boost, Why Not?
After pointing out her reasoning against the ‘Chinese buying up bitcoin’ narrative, Wan conceded that we would all be pretty happy with a sound narrative to encourage bitcoin price to ‘moon’.
On this basis, she concurred, tongue firmly in cheek: “I totally buy into this”
Do you think the Chinese are stacking sats as the yuan is tumbling? Let us know in the comments below!