Bitcoin Hits Record High Against Chinese Yuan, Revealing Central Bank Practices

Bitcoin Surges to All-Time High Against Chinese Yuan

Bitcoin surged to an all-time high against the Chinese Yuan (CNY) today, propelled by a recent rally and growing anticipation surrounding the Bitcoin halving event. The cryptocurrency’s value has been fluctuating across global markets, reflecting the failure of various central banks’ monetary policies.

Bitcoin’s Value Fluctuates Across Global Markets

In a recent post on X (formerly Twitter), Lex—a Bitcoin supporter—highlighted that Bitcoin’s recent all-time high reflects the failure of various central banks’ monetary policies. Lex shared a screenshot of Bitcoin trading at 426,878 CNY, which is higher than its November 2021 ATH against the CNY. However, Chinese residents cannot trade digital assets as crypto assets are banned in Asian nations.

The reason behind this is based on two premises. Firstly, no direct Bitcoin/CNY trading pair is available in the Chinese market. Given this, Bitcoin is often paired alongside the US dollar (BTC/USD), denominating the value against the USD. The Bitcoin price in USD is then adjusted to the price of CNY against the dollar, resulting in the Bitcoin price hitting an early ATH in Asian countries. Furthermore, the CNY has not been the only ATH-breaking fiat pathway for Bitcoin, with other countries like India also experiencing similar trends.

Bitcoin’s Deflationary Model Makes It a Store of Value

Global events like the Covid-19 pandemic have adversely impacted the traditional financial market. Despite a return to normal activities, several financial bodies have battled economy-crippling inflation, with access to goods and services becoming more expensive. Bitcoin has been posited by many as a strong alternative to regular fiat, given its 21 million maximum supply ceiling and deflationary nature. Its skyrocketing prices are becoming even more attractive as many look to break away from state-controlled financial services.