Bitcoin price increased by more than 10%, and more and more investors turned to investing in Bitcoin

As the RMB continues to depreciate, investors are increasingly focusing on asset diversification, which has boosted Bitcoin's upward trend in the past three months. According to market data from Bitcoin trading platform OKCoin, the price of Bitcoin rose to $683 on Thursday, reaching its highest point since early July. At the same time, the recent trading volume is also the highest in six months.

There are reports that Chinese investors have limited investment channels, and many people are starting to look for other ways to preserve their assets, especially after the plunge in China's stock market last year, which greatly hit speculators' confidence, and the recent cooling of China's real estate market, and they are in urgent need of finding more investment channels. "There are also reports that due to the continued weakening of the RMB and the expectation of further depreciation, investors are increasingly demanding asset diversification. In September, the RMB depreciated by more than 1.5% against the US dollar, and on Thursday the RMB price fell to a six-year low of 6.7922 RMB per US dollar.

Mingxing Xu, CEO of OKCoin, one of the largest bitcoin trading platforms in mainland China, agreed with this view, saying that Chinese investors are actively looking for alternative investment methods to alleviate the pressure brought by the depreciation of the RMB, and Bitcoin is just one of the options.

Xu Mingxing said:

"Like other investment methods, Bitcoin trading provides Chinese investors with an investment option to diversify their assets, especially for those with a large investment appetite."

At the same time, he also reminded that Bitcoin itself cannot be used as a means of preserving value against the depreciation of the RMB because Bitcoin is highly volatile.

Compared with 2015, the price of Bitcoin soared by 80% on June 17 this year, reaching its highest level in 30 months. The driving force behind this is the rapid depreciation of the RMB and the expected reduction in Bitcoin production. In early August, due to the attack on the Hong Kong exchange Bitfinex, the value of Bitcoin fell all the way, but then experienced a strong rebound.

Xu Mingxing said,

As people become more and more familiar with digital currencies and the demand for asset diversification grows stronger, Chinese investors are increasingly convinced of the value of Bitcoin, which has promoted the increase in Bitcoin market prices and trading volumes.

He added that he was not worried about increased regulation of the bitcoin market because it was still a small market in China.