Did CNY Cause Bitcoin’s Fall and Sideways?

cny strengthens

China’s yuan, CNY, has been gaining against the dollar since mid June, rising from one dollar buying you close to 7.2 CNY, now to 6.98. That’s while the dollar’s strength index has been falling considerably from above 100 to now 96 where there’s a significant support line as it nears a two year low. As bitcoin is primarily traded against the dollar, a fall in the value of usd should lead to a rise in bitcoin’s price. The strengthening CNY however may be counterbalancing, with both China and America a very big market for bitcoin and other cryptos. As China had a far shorter lockdown of just three weeks, compared to some three months for much of the west, its economic recovery from the temporary shock has been quicker, leading to a strengthening of their fiat money. As their fiat money is now more valuable, they need to spend less…

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