This translation has been automatically generated and has not been verified for accuracy.Trade tensions between the United States and China and a weakening yuan are boosting demand for cryptocurrencies among Chinese investors, market players from Asia to New York said.
Still, the impact of the U.S-Sino trade war on China’s economy and its falling currency are driving some larger investors to shift money from the yuan to cryptocurrencies, said Andy Chung, head of operations at OKEx, a Malta-based platform popular among Chinese. The yuan’s sharp fall on Aug. 5 coincided with a 7% gain for bitcoin and a 9% surge in cryptocurrencies’ market capitalisation, leading analysts to speculate that some Chinese investors were selling the yuan and buying digital currencies.
Mati Greenspan, an analyst at the eToro exchange, said as the U.S. dollar surpassed 7 yuan the venue saw significant increases in crypto and commodities trading, alongside a moderate drop-off in stocks and fiat currency volumes.