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Bitcoin surges past $12,000 on the back of Chinese Yuan’s fall

Biraajmaan Tamuly

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It is hard to catch your breath when you are a cryptocurrency trader. It’s even harder when you need to keep track of the largest virtual asset when it sprints toward the moon after under-performing for weeks. Bitcoin, the obvious asset in the discussion, surged past $12,000 at press time again, after the coin witnessed a major hike of 4.62% in 2 hours.

The price of Bitcoin reached a valuation of $12,144 at press time on Bitstamp, and the market capitalization was over $200 billion. The trade volume of Bitcoin was not dominated by a single exchange. However, it is important to note that the top 3 exchanges contributing the most volume were all Asian exchanges.

Source: TradingView

The aforementioned trend can be attributed to the Chinese currency Yuan [renminbi] dropping down to an alarming level of 7.024, with respect to the US fiat currency for the first time in 11 years on Monday.

The fall in value for the Chinese fiat was speculated to be one of the reasons that crypto-trading in Asian countries was surging.

In July, Bitcoin suffered a dropped of almost 26 percent from June 27th to July 27th, taking its valuation down from $12901 to almost $9471.

In light of both market optimism and pessimism, the larger community was of contrasting opinions on the coin’s trajectory.

However, according to Twitter user @PlanB, Bitcoin’s valuation was assured for the long run after he claimed that the bull run usually commences after a difficulty bottom had transpired in the market. The start of 2019 had brought a surge in prices for BTC, and the analysis suggested that short term devaluation did not reflect the impending growth of Bitcoin.

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Biraajmaan is a full-time journalist at AMBCrypto covering the US market. A graduate in Automobile engineering, he writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.