🤔 How can the strength of the Chinese yuan support the price of Bitcoin?

The rise of the Chinese yuan to its highest level in two months could create a positive atmosphere for Bitcoin, not directly, but through its impact on the global economy.

🔹When the yuan strengthens, China has more room to inject economic stimulus to face slowdown and contraction, which often supports high-risk assets like cryptocurrencies.

🔹Additionally, the strength of the yuan could lead to a weakening of the US dollar due to interventions by the Chinese central bank, and it is historically known that a weak dollar supports assets denominated in it, with Bitcoin at the forefront.

A weaker dollar means easier liquidity 🔹and cheaper money, which drives investors towards crypto.

🫥 In summary:

If the yuan remains strong along with Chinese stimulus and a weaker dollar, we may see strong support for Bitcoin in the coming period.

What do you think?

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