Capital from China May Flow into Bitcoin!

Economic problems in China and the depreciating yuan could cause money to flow into Bitcoin in the next few months. Matrixport Head of Research and Strategy Markus Thielen pointed out the possibility of Chinese investors turning to BTC at a time when the local economy is weakening.

According to the news shared by Bloomberg, $49 billion worth of capital left China in August. Experts stated that this figure is the biggest change since December 2015. As direct investments leave the country, the dollar is experiencing its most valuable days against the yuan in the last 17 years.

Thielen thinks that outflow from the country may increase due to the weak growth momentum of the Chinese economy and the weak profitability of local companies. According to the economist, although it has been a long time since it was banned in the country, Bitcoin is still on the minds of capital owners:

“The harsh capital conditions imposed by the Chinese government on local investors may cause some of the outgoing money to flee to Bitcoin.”

BitMEX founder Arthur Hayes made a similar comment in a recent post. The cryptocurrency influencer has stated that there is a possibility that the money will go into gold or Bitcoin.

Although Hayes focuses on the possibilities for gold and Bitcoin, he is sure that the capital coming out of China does not go to American bonds.

What Happened to Bitcoin Price in the Past?

This is not the first time that capital outflow has occurred in China, the Asian giant and the world’s second largest economy. While capital went out of the country in the 2016-2017 period, the outlook was positive in 2017-2022.

During the period in question, BTC gained approximately 31 times in value. Bitcoin, which started 2016 at $431, said goodbye to 2017 at $13,380.

source site-3