NuggetsNewsAU CEO Alex Saunders believes tensions between the U.S. and China will increase capital flight with cryptocurrencies.
According to famous analysts and commentators, it is thought that Bitcoin and stabilcoins will get the most benefit if Yuan is weakened.
Just five months before the expected 2020 US elections, US President Donald Trump continues to increase his hostility towards China and is trying to make this a key element of the re-election campaign.
The US President’s direct accusation of China on the pandemic and the use of the term “Chinese Virus” instead of coronavirus or Covid-19 at every opportunity has escalated the long-standing trade war between the USA and China.
Looking historically, there is a strong reverse correlation between Bitcoin price and Yuan. When Yuan suffered a major depreciation in 2016, Bitcoin achieved a 140% increase during this time.
Although China has banned crypto exchanges in 2017, citizens of the country still prefer Bitcoin because of China’s capital pressure. According to Chinese law, more than $ 50,000 of money is banned during the year to prevent large amounts of money from being exported.
In January 2020, Peckshield, a research company, announced that the outflow of money rose to $ 11.4 billion in 2019 thanks to the crypto market from China. Tether (USDT), the world’s leading stabilcoin, remains the most popular choice among Chinese citizens to send money abroad.