How does the appreciation of the Renminbi indirectly benefit Bitcoin? This logical chain is worth paying attention to.

Question

【CryptoPintuan】Recently, there has been an interesting phenomenon—the appreciation of the Chinese Renminbi. According to the latest data, the USD to RMB exchange rate has fallen to 7.043, reaching a new high since October. The RMB has appreciated approximately 1% this quarter, rising 4% from the low point in April.

This may seem like just an exchange rate fluctuation, but it conceals potential impacts on the Bitcoin market. The logic is as follows: RMB appreciation may prompt policymakers to introduce economic stimulus measures to alleviate potential inflation pressures. Once the Federal Reserve or other central banks follow with easing policies, the US dollar index often weakens. And this becomes crucial—when the dollar is weak, investors tend to increase demand for dollar-denominated assets like Bitcoin. In other words, a strong RMB → a weaker dollar → increased Bitcoin demand, forming an interconnected chain.

In the coming weeks, market focus will be on whether the RMB appreciation trend can continue and whether the policy adjustments that follow can truly support Bitcoin. This could be an invisible driver influencing the crypto market in the short term.

AllInAlice · Accepted Answer

Will this logical chain really hold up? It still seems to depend on the Federal Reserve's stance.

The appreciation of the RMB is indeed interesting, but can it really transmit all the way to BTC?

Wait, isn't this just saying that liquidity glut ultimately flows into risk assets?

Forget it, let's just wait and see, as history tends to repeat itself in this cycle.

SwapWhisperer · Answer

RMB appreciation → USD weakening → BTC rise, I believe in this logical chain

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Wait, does the central bank really print money for RMB appreciation? That’s a bit counterintuitive

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Basically, it’s still betting on the Fed cutting rates, BTC depends on this

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Fallen since April and now up 4%, early holders should be laughing out loud

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RMB strength is real, but how long it can last is the real question

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USD weakness = BTC frenzy, will this be another mirage this time?

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The chain is correct, just worried about policy changing again... Have seen too many reversals

SmartContractPlumber · Answer

The logical chain sounds good, but the prerequisites are a bit loose. Central bank stimulus policies → US dollar weakens → Bitcoin rises, there's a bit of a gap in between.

LiquidatedThrice · Answer

The RMB appreciation is good for Bitcoin, but I feel this logic is a bit far-fetched... A weak US dollar doesn't necessarily mean Bitcoin will rise.

Such a complex deduction, it's better to just watch the Federal Reserve's actions directly.

Wait, are we about to get chopped again?

There are too many links in this chain; breaking any one of them is pointless.

It's basically betting on the central bank easing, so why bother with all this?

RMB appreciation... the central bank will want to stabilize growth, so they might loosen monetary policy, I believe that. But how much Bitcoin can actually rise is really hard to say.

This logical chain can be applied at any time; the information density is a bit low.

It's another "may cause" speculation; the market has probably already priced it in.

It seems reasonable, but in practice, it can easily be proven wrong. I'll wait and see.

Can currency appreciation really drive up the coin price? I doubt it; liquidity is the key.

MEVSandwich · Answer

I believe in the logic that the RMB appreciation pushes down the USD, but can it really drive Bitcoin? It also depends on how the Federal Reserve plays its cards.

This chain seems smooth, but in actual trading, the opposite often happens. I bet that after the RMB stabilizes, it might actually fall.

A 4% appreciation and no reaction in the price of the coin—don't over-interpret it, everyone.

No, why should the central bank flood the market just because the RMB appreciates? That assumption is a bit too big.

Wait, is this about next year's expectations, or should we start buying Bitcoin right now?

IronHeadMiner · Answer

Does the RMB appreciation push Bitcoin? This logical chain seems a bit too straightforward.

Wait, isn't this just betting that the Federal Reserve will follow suit and loosen monetary policy? Not necessarily.

Really? If the RMB is strong, it can weaken the dollar? I remain skeptical.

Can this wave continue? It feels like just a technical rebound.

But a cheaper dollar definitely benefits holding coins, that’s for sure.

GlueGuy · Answer

Does the appreciation of the Renminbi benefit Bitcoin? I have to question this logical chain.

This theory sounds plausible, but in the real market, things are rarely so linear.

The price of cryptocurrencies still depends on the Federal Reserve's stance; exchange rates involve too many variables.