- Crypto analyst Crypto Banter said the Chinese buying is one of the factors behind the recent Bitcoin pump.
- Chinese investors were abandoning the Chinese Yuan for Bitcoin, buying at over $32k apiece.
- Unlike predicted, Bitcoin has seen renewed interest in September, adding a 4% gain in the past 7 days.
Crypto analyst CryptoBanter, in a recent video on YouTube, said Chinese buying is one of the reasons behind the recent Bitcoin pump. Following steep declines in August, the world’s largest cryptocurrency has seen moderate positive performance in September.
The analyst mentioned that Chinese consumers are abandoning the country’s currency, which has depreciated in value, for Bitcoin and gold. The stock market and housing market crisis have also reportedly weakened the Chinese Yuan.
According to the analyst, the rush for digital gold in China has seen its price go up to $32,500 for one bitcoin and then swap for USDT at $33k. The price of Bitcoin in China is significantly higher than the current Bitcoin price of $27,135, thus creating a huge arbitrage opportunity.
Furthermore, the analyst said September, which was a traditionally bearish month for Bitcoin, has performed otherwise. While many analysts predicted a steeper downturn in the token’s price, BTC has instead performed, up over 4% this month.
Per the video, the analyst said the token is on track to garner more gains. Referencing previous price movements, the analyst noted a correlation between Bitcoin’s price and the U.S. dollar Index DXY. Whenever the DXY goes up to 105, the price of Bitcoin also goes up.
Additionally, the analyst said long-term Bitcoin holders have increased to over 75%. Furthermore, he said many of the long-term holders are still acquiring the token despite volatile market conditions.
Data from CoinMarketCap show that the token has added a 0.79% gain in the past 24 hours. On the weekly price chart, Bitcoin has increased by 4.56%. At the time of press, the token had a market cap of $528 billion, making it the largest cryptocurrency network in the world.
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