Leading Economist, Alex Kruger has recently come up with a revelation that Chinese interest in Bitcoin has been on a rise in 2019.
Trade War Has Led To Heightened Interest In Bitcoin
Per Kruger’s tweets, Bitcoin searches spiked when China called for a People’s War against the US.
He further mentioned that Bitcoin searches seem to be affected by USDCNY searches. However, he believes that it may be due to the weekend effect and Aug/5 breakout may be an exception as the crypto community started talking about it.
Interestingly, not only has a rising interest in Bitcoin among the Chinese has been noted, it seems that the heightened interest is also responsible for the Bitcoin price rise. Recently, a study by Grayscale Investments suggests that the unprecedented rise in Bitcoin is because of the increasing tension between the world’s largest economies.
Source- Trading View
In the study, the analysts divided Bitcoin’s rise into two phases. The phases divided were before and after 5th May 2019 respectively. The 5th of May officially saw the US President, Donald Trump increase trade tariffs on China.
Per their findings, only assets like Gold, Japenese Yen, Bonds, and Swiss Franc yielded a positive growth. Interestingly, the drop of the Chinese Renminbi and Bitcoin’s rise also showcased a strong correlation during the same period.
Source- Grayscale Investments
Grayscale’s Hypothesis accredited about 75% of 2019 gains in Bitcoin to the rising tension between the US and China.
Will The Chinese Public Cryptocurrency See Day Light?
Interestingly, there is yet another side to this story of rising interest in Bitcoin.