Commodities such as Gold and Oil are some mainstream assets which have been outperformed by Bitcoin in 2019. The world’s largest cryptocurrency has had a good 2019, surging by 150% this year after surviving a troubling crypto-winter towards the end of 2018.
Bitcoin’s price corrections this year weren’t significant either as Bitcoin continued to consolidate its position, with many analysts predicting that the digital currency might reach its previous high of $20,000 soon/
However, a striking comparison was recently drawn between Bitcoin and the offshore RMB futures market.
According to the chart, it can be observed that the price mediation of Bitcoin and the offshore RMB futures market has had a trend similarity since late last year, even when both assets have been independent of each other’s trade.
In November 2018, during the Bitcoin Cash hard fork, the price of Bitcoin experienced a devaluation which was very much similar to the downtrend witnessed by the Renminbi market exactly a month later. When Bitcoin stepped out of the bear market and surged massively in April, it was again observed that the Renminbi market had corrected itself at the same time.
Many in the community have suggested that the massive resemblance implies that Bitcoin may have been involved indirectly in the offshore RMB market for that specific time period. According to the Bitcoinist.com,
“It could’ve been that the two markets had become intrinsically linked because the vast majority of investors in the RMB futures market, were also trading in the BTC market-which is quite possible given the popularity of Bitcoin across the Asian markets. “
The popularity of Bitcoin is unprecedented in Asian countries, despite the fact that it is not completely legal in the region. However, such market similarity raises interesting questions such as how much of these offshore trades react to the bullish sentiment of crypto-assets, especially Bitcoin.
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