The negative correlation between CNY and Bitcoin has fallen to a record low over the past seven days. The first cryptocurrency became a risk-hedging tool for many residents of China. Therefore, its rate has risen sharply on local crypto exchanges.
Chinese national currency is falling. Factors such as the ongoing trade war with the United States and the easing of monetary policy by the country’s central bank contribute to the CNY / USD depreciation. In addition, the status of a legal and protected virtual asset has increased the interest of Chinese investors in Bitcoin.
According to Garrick Hileman, a researcher at the London School of Economics, the trend towards the inverse correlation of Bitcoin and CNY began to form in the spring. At that time, the tension in relations between the USA and China was only growing.
Today it became known, that the volatility of the British pound exceeded the performance of Bitcoin. This week, the British pound against the dollar fell below $1.2. Such low price indicators were recorded last time in 1985. The exception is a short-term collapse in the fall of 2016 when the pound for some time fell to the level of $1.15.