China’s relationship with Bitcoin is something that has been a source of much speculation in the cryptocurrency space.
From banning the trade of Bitcoin in 2017 to legalizing owning the digital currency, the stance keeps on changing. What’s not changing is the rising interest in Bitcoin.
A spike in Bitcoin searches occurred simultaneously with the searches for trade war and Trump.
This year we saw Bitcoin moving in response to the development in the US-China trade talks. Earlier this month, Bitcoin jumped after Trump Tweeted and Chiense Yuan broke its important physiological level of 7 against US Dollar.
“Continuation of the trade war means BTC up. The longer the war runs, the higher bitcoin will go,”
said Clem Chambers, CEO of private investors website ADVFN.com.
This has him predicting Bitcoin to soar above
“ £20,000 by Christmas or sooner.”
Bobby Lee — co-founder and former CEO of China’s first crypto exchange BTCC — says the Chinese have always thought of Bitcoin as an investment rather than a payment system.
Bitcoin searches may seem to often move in line with USDCNY searches (贸易战, red) … however, that’s likely due to the weekend effect (interest for both decreases during weekends, even BTC). The Aug/5 USDCNY breakout may be an exception, as everyone started talking about it.
This chart shows bitcoin searches’ peaks of 2019.
It’s safe to assume interest is usually driven by price, rather than vice versa, although there should be a feedback loop in play.
For a better analysis, one needs the time series, ideally with intraday periodicity, to run stats.