US-China trade war, investors towards the yuan-bitcoin exchange
Cryptocurrency experts say that Chinese investors are trying to exchange the yuan for other assets, like dollars and bitcoin, because they think the yuan will continue to drop. Jeff Kauflin (Forbes) explains that the yuan has fallen 2% versus the dollar in the last two weeks. They fear President Xi Jinping will devalue the currency significantly to keep Chinese goods price-competitive for U.S. buyers despite tariffs. The Chinese government has continuously tried to prevent people from selling their yuan but crypto trading volume in China is difficult to measure because the country banned exchanges in 2017.