RMB-denominated Bitcoin grows in importance

    Bitcoin prices surged for the second time in the Asian session on Tuesday (December 1), recovering overnight losses and continuing yesterday's strong performance.

    The quotes released by BITSTAMP show that Bitcoin/ US dollar (XBT/USD) rose from below 370 to around 382 yesterday. Although it fell back to around 370 overnight, it rose moderately again to 378 in the Asian session of this trading day.

(Bitcoin/US dollar time-sharing chart Source: Bloomberg, FX168 Financial Network)

    The quotes released by KRAKEN show that Bitcoin/ Euro (XBT/EUR) rose from 348 to above 360 ​​yesterday, and fell back to the 350 level overnight, but it is looking towards the 358 level again in the Asian session of this trading day.

(Bitcoin/Euro time-sharing chart Source: Bloomberg, FX168 Financial Network)

     The quotes released by Huobi.com show that Bitcoin/ CNY soared from around 2350 to 2490 yesterday. Although it retreated to 2410 overnight, it once attacked 2490 twice in the Asian session of this transaction.

(Bitcoin/RMB 30-minute chart Source: Huobi.com)

     On the industry front, the International Monetary Fund (IMF) announced on Monday (November 30) that the RMB will be included in the Special Drawing Rights (SDR) currency basket.

     The weight of the renminbi in the new currency basket will be 10.92%. The weights of the four existing reserve currencies have also been adjusted accordingly. Among them, the weight of the euro has been reduced from 37.4% to 30.93%. The weight of the US dollar has only slightly decreased from 41.9% to 41.73%.

     The price of Bitcoin denominated in US dollars and euros is of great reference significance in the international market, especially the price of Bitcoin denominated in US dollars. However, with the inclusion of RMB in the basket, the importance of the price of Bitcoin denominated in RMB will also increase.

     In particular, considering the significant decline in the weight of the euro in the SDR, it is expected that the influence of the RMB-denominated Bitcoin price will gradually catch up with the euro-denominated price.

     Furthermore, investors must not forget that the vast majority of reported volume in the Bitcoin market comes from Chinese Bitcoin exchanges, accounting for 93% of the total market volume.

     At 11:33 Beijing time on December 1, Bitcoin/USD was 377.49, Bitcoin/Euro was 356.55, and Bitcoin/CNY was 2463.00.