- Crypto analyst CryptoBanter has shared views suggesting that Chinese buyers are behind the recent price increases in Bitcoin.
- The analyst highlighted that Bitcoin reached as high as $32,500 and then noted that this Bitcoin was traded for $33,000 USDT (Tether).
- The analyst noted that September is traditionally a bearish month for Bitcoin, but the performance this month has been exceptional.
A famous analyst claimed that with the recent developments in China, investors turned to Bitcoin investment and increased the price; How did that happen?
How Did Chinese Investors Boost Bitcoin?
Crypto analyst CryptoBanter has shared views suggesting that Chinese buyers are behind the recent price increases in Bitcoin. This claim is quite remarkable, especially considering that Bitcoin had started showing moderate performance in September, following the sharp declines in August.
CryptoBanter stated that economic conditions in China have pushed citizens away from the local currency, the Chinese Yuan, and towards alternative assets like Bitcoin and gold. Additionally, the analyst claimed that crises in the Chinese stock market and real estate sector have further weakened the Chinese Yuan.
Highlighting that the increased demand in China has driven Bitcoin’s price up, with Bitcoin reaching as high as $32,500, the analyst noted that this Bitcoin was traded for $33,000 USDT (Tether). This implies that Bitcoin’s price in China is above the global average, potentially creating significant arbitrage opportunities.
Furthermore, the analyst pointed out that September is traditionally a bearish month for Bitcoin, but the performance this month has been different from this trend. While many analysts predicted further drops in Bitcoin’s price, it gained over 4% in September.
Correlation Between the US Dollar and Bitcoin
According to the analyst, there is a correlation between Bitcoin’s price and the US Dollar Index (DXY), with observed increases in Bitcoin’s price when the DXY reaches 105. Therefore, the movements of the DXY and the condition of the US dollar are significant factors influencing Bitcoin’s price.
Additionally, the analyst noted that the percentage of long-term Bitcoin holders has increased to over 75%. This suggests that investors in the market still view Bitcoin as a long-term investment and continue to hold this asset despite volatility.
In conclusion, the interest of Chinese buyers in Bitcoin, along with other global factors, stands out as one of the reasons behind the recent price increases in Bitcoin. However, since the cryptocurrency market is always filled with uncertainties, it is important for investors to exercise caution and closely monitor market developments.
