Wall Street News: Chinese buyers once again made strong purchases, and Bitcoin prices soared 10% in the short term

Bitcoin, whose price had remained stable over the past month, saw its price surge by nearly 10% in the short term due to a massive influx of Chinese buyers.

Driven by huge buying demand, the price of Bitcoin rose to 4,142 yuan (620 U.S. dollars) last night on OKCoin, China's largest Bitcoin trading platform. The day before, the price of Bitcoin on the platform was still around 3,840 yuan, a 24-hour increase of 7.86% .

According to Bitcoin news website LiveBitcoinNews.com, research institutions and financial companies believe that concerns about the depreciation of the RMB are the most important reason driving Chinese buyers to buy Bitcoin in large quantities.

The report said that China is the world's largest Bitcoin market, with huge trading volumes and investor demand on some exchanges, and expectations of RMB depreciation "leading local investors to buy Bitcoin at higher prices."

There were rumors earlier that the RMB might depreciate significantly in September, and some even said that 7.0 is likely to arrive in September. However, in the eyes of senior market participants, this is not credible.

Foreign exchange market expert Han Huishi said last week:

Recently, no less than 10 friends in the foreign trade and banking circles told me that they heard that the RMB will depreciate significantly in September. It is said that this news is widely spread in the trader circle. One friend even said that 7.0 is likely to come in September. He asked me if I had heard similar news. This rumor was too sensational, and I felt confused at the time.

Han Huishi said that if this happens, the direct consequence will be to worsen the depreciation expectations and spread the worries about RMB depreciation to ordinary people. This kind of thing with high risk but uncertain benefits will not happen very often.

He also believes:

The specific exchange rate is the result of a complex game between multiple stakeholders. It is impossible for regulatory authorities to set a target for the US dollar in advance, because they cannot predict how the domestic and foreign market environment will change, nor can they predict how other currencies will fluctuate. Setting a target in advance is bound to be self-defeating. Even if there is a target, this information must be a state-level secret and it is impossible to leak it to a few traders in advance.