- Clem Chambers is certain an influx of Chinese money caused Bitcoin surge
- Wealthy individuals moving money from yuan to Bitcoin
- Bitcoin could replace gold as store of value
ADVFN CEO Clem Chambers is certain that Bitcoin’s recent price surge was the result of an influx of Chinese money. He said the trade conflict between China and the US is likely to cause wealthy investors to look for safe havens to protect their money against the ripple effects of the trade war.
Many experts have voiced their opinion on why Bitcoin has suddenly started strengthening. Chambers ascribes the surge to the current situation in China.
He said that the Chinese devaluation and the inside response to the possibility of more significant devaluations set the whole rally in motion. He added: “It was a group of insiders buying Bitcoin for Chinese yuan before the devaluation that took place two days later struck. This devaluation process has been going on for weeks, but it accelerated last week.”
Chambers believes that the individuals behind these purchases might not even be aware of what they set in motion.
He feels that the current standoff between China and the US might well result in Bitcoin replacing gold as the preferred alternative store of value.
Chambers continued by saying that should the trade wars escalate into meltdown, Bitcoin will skyrocket because vast amounts of Chinese money will be exchanged for the cryptocurrency as the super-wealthy try to protect their money against devaluation.
He added: “Bitcoin, not gold, is and will be the asset they will run to first.”
Bitcoin is currently trading at $8,237.11. Yesterday, it traded above $8,400 at one point. The cryptocurrency appears to have found support at $8,200, while $8,400 has become a core resistance level.