[Analysis] "Weak Chinese Yuan May Boost Bitcoin (BTC) Investment Demand... Bull Market Could Follow"

Recently, as the Chinese Yuan weakens and funds are leaving the Chinese stock market, there is analysis suggesting that investors may turn their attention to Bitcoin (BTC) as an alternative asset.

On the 7th, cryptocurrency-focused media CoinDesk reported, "The Chinese Yuan has fallen to its lowest level since September 2023. As capital outflows from China accelerate, there could potentially be an increase in demand for Bitcoin." The CSI300 Index, a major blue-chip index on mainland China's stock exchanges, is also at its lowest level since September 2023.

Founders of the London Crypto Club stated, "China seems to be letting its currency devalue without defending it anymore," adding, "Capital outflows from China could accelerate. In a situation where it's difficult to move capital overseas, Bitcoin could become a destination for alternative investments." Previously, when China devalued the Yuan in 2015, Bitcoin surged more than threefold.

Meanwhile, there is also a forecast that if the People's Bank of China (PBOC) intervenes in the market, the flow of funds into Bitcoin could be limited. The media added, "If the People's Bank of China intervenes directly by selling dollars to defend the Yuan's value, the potential upward trend of assets like Bitcoin could be limited."