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China watchers are always looking for new ways to gauge capital flows and pressure on the yuan. Bo P data is even worse, only coming bitcoin and the yuancouncil on foreign relations quarterly.

So, the suggestion late last year that the daily price gyrations of bitcoin might work as a high-frequency-hot-money proxy certainly raised eyebrows. The simultaneous weakening of the yuan and rapid rise of bitcoin and cryptocurrencies more generally between mid and May of this year sparked wide speculation about the relationship between the two. The apparent inverse correlation led observers to posit that as the PBOC tightened capital controls and the yuan continued to weaken, bitcoin became an increasingly attractive way for Chinese residents to get their money out of the country.

An examination of daily bitcoin trading volumes provides prima facie evidence that this may have been the case between late and late However, any correlation between the price of yuan and the price of bitcoin collapsed early this year.

Bitcoin continued to surge through the first half of despite a consistently strengthening yuan. This alone though is not proof that there was never any causation between the two. The coincident clamp down on cryptocurrencies by China just as the correlation was breaking bitcoin and the yuancouncil on foreign relationsand subsequent rise in bitcoin trading outside of China show that the dynamics driving the price of bitcoin changed fundamentally in the first few months of In 20 the overwhelming majority of bitcoin trading was conducted through China-based exchanges and with yuan.

The price of bitcoin fell more than 0 today bitcoin and the yuancouncil on foreign relations market turmoil continues in the aftermath of Chinese exchange BTCC's trading stoppage announcement. When accounting for the day's price high ofAt press time, the price is atShanghai-based BTCC announced that it would bitcoin and the yuancouncil on foreign relations cease offering trading services on September 30, citing statements issued earlier this month by the People's Bank of China and other regulatory bodies in the country.

The new move downward comes hours after bitcoin's price fell below , falling below the day moving average for the first time since July Many other cryptocurrency markets are experiencing sharp declines today, according to data from Coin Market Cap. The collective cryptocurrency market capitalization has fallen below 0 billion for the first time in a month, per Coin Market Cap, hitting roughly 4.

The leader in blockchain news, Coin Desk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? This article should not be taken as, and is not intended to provide, investment advice. The last few days bitcoin has been trading over B a day in hour trade volume, but on November 9 the decentralized currency swapped over B in BTC trades.

The price staying above K is giving traders some optimism that the value can still hold when fork buy pressure dies down. Bitcoin trading volume down Author: Bitcoin and the Yuan Council on Foreign Relations China watchers are always looking for new ways to gauge capital flows and pressure on the yuan.

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