After Bitcoin prices dwindling from the past couple of weeks, Bitcoin suddenly soared this week, with the bitcoin price rising more than 20% in the last seven days and jumping over $500 per bitcoin in a matter of minutes last night, only to fall back again.
The abrupt bitcoin price rally was largely put down to the escalating U.S. China trade war that’s being stoked by President Donald Trump and yesterday caused China’s yuan currency to weaken to its lowest point in more than a decade, prompting Trump to label Beijing a currency manipulator—but new data suggests there could be more to the latest bitcoin bull run.
Many cryptocurrency experts and analysts were quick to suggest that bitcoin’s rise in tandem with the fall in the yuan means it’s becoming a safe haven asset, despite its extreme volatility and no one being able to accurately predict what bitcoin will do next.
However, it would appear the bitcoin price suddenly soared last night before China announced an increase to the yuan’s reference rate, with analysis of trade volume data by The Block, a bitcoin and cryptocurrency industry website, finding the catalyst was unusually high bitcoin volume on Binance, the world’s largest bitcoin and crypto exchange.
Bitcoin, despite being the most widely-traded cryptocurrency with volumes into the billions of dollars every day, still struggles with wild price swings due to so-called market whales moving large volumes of bitcoin at above or below the current market value.