Foreign media: Bitcoin plunges 20% after hitting a new high due to a surge in the RMB exchange rate

Bitcoin plunges 20% after hitting a record high; foreign media: due to surge in RMB exchange rate

Core Tip: Foreign media said that after the sharp fluctuations in Bitcoin, many people turned their attention to China, the main source of Bitcoin demand.

Source: Cankaoxiaoxi.com

Coins with the Bitcoin logo. Hong Kong Economic Times website

Reference News reported on January 7 that foreign media said that Bitcoin approached a record high, but then plummeted into the bear market, all on the same morning. Even for this currency that has fluctuated wildly in the nine years since its launch, January 5 was unusual.

According to the Chinese website of the Wall Street Journal on January 6, this electronic currency fell wildly as the renminbi strengthened. After approaching a record high on some trading platforms, Bitcoin plummeted by more than 20% within a few hours, and then recovered some losses in the morning hours in the United States, trading at about $977 (1 US dollar is about 6.89 yuan - this website note).

According to news and research site Coindesk, the price of bitcoin fell from around $1,150 at 2 a.m. Eastern Time to $887 at 8 a.m., a drop of about 23% in six hours. At one point, the currency fell by more than $200 in a single hour.

After the wild swings, many are looking to China, the main source of demand for bitcoin, as the yuan surged to its highest level against the dollar since mid-November after weakening in recent months.

A trader at WhalePool, an open platform that allows global bitcoin traders to talk anonymously, said this is evidence that Bitcoin is tracking the RMB.

On January 2, Bitcoin broke through the $1,000 mark on several of its online trading platforms, the first time in three years and the result of its 120% rise in 2016.

In fact, Bitcoin has benefited greatly from the rise of various political risks last year, especially Brexit in June and Trump's protectionist rhetoric against China, as Bitcoin has gained ground mainly in Asia, French newspaper Les Echos reported on January 3. Bitcoin has recently accelerated its appreciation due to concerns about real monitoring of funds, and Beijing has introduced various new measures in parallel.

According to reports, in December 2013, Bitcoin reached a record of $1,163 on the Bitstamps platform. Some experts who were asked questions on the Bitcoin Counter website believe that the currency may appreciate between $1,200 and $1,400 this year, and one expert even bet that it would appreciate between $2,000 and $3,000.