Bitcoin price hits three-year high due to Trump effect and RMB depreciation

On Friday, the price of Bitcoin hit $777, the highest since February 2014. Some analysts said that the rise of Bitcoin was driven by Trump's election as US president, the depreciation of the RMB, and the Italian referendum on Sunday.

Since November, the RMB exchange rate has weakened significantly. The onshore RMB has depreciated against the US dollar during the month, stimulating a sharp rise in the price of Bitcoin. According to data from the Bitcoin trading platform Huobi, since November, Bitcoin has risen by 6.008% to RMB 5,148 per Bitcoin, with a peak of RMB 5,424.59, a sharper increase than the depreciation of the RMB against the US dollar.

According to Zhitong Finance, 90% of the current global Bitcoin transactions come from China. Arthur Hayes, the founder of the Bitcoin trading platform BitMEX, said earlier that if the RMB depreciates to 7 against the US dollar, the Bitcoin price against the US dollar is expected to rise to 1,000. Currently, each Bitcoin is worth about 734.43 US dollars.