China FX reserves drop as Bitcoin Hits one-month high

Bitcoin rose over 2 percent on Tuesday to its highest since January 4th as unpredicted activity in Chinese exchanges lead to a drop in China’s foreign exchange reserves. “The volume in the Chinese exchanges is starting to pick up again,” founder of Brian Kelly Capital, Brian Kelly said. Kelly is long bitcoin.

The total volume in Chinese bitcoin exchange OKCoin was 14,500, a price level not seen since last month, according to TradeBlock.com. The digital currency rose overnight as news of China’s closely watched foreign exchange reserves dropped by $12.3 billion in January to $2.998 trillion. Although the rate of bearish movement has slowed, the drop below the $3 trillion support level ignited investor eyes as Beijing struggles to support the yuan and prevent capital outflows.

“You can’t stop things like Bitcoin.  It will be everywhere and the world will have to readjust.  World governments will have to readjust,” said John McAfee, founder of McAfee.

Leave a Comment