Bitcoin Vis-a-Vis Currency Wars

The People’s Bank of China’s “one-off depreciation” of the yuan triggered a chain reaction across global markets and all the asset classes amid rising concerns that Asia’s largest economy is headed for a deeper slowdown.

The Standard Poor’s 500 Index dropped 1 percent by 4 p.m. in New York, oil plummeted to a six-year low and emerging-market equities slipped. Gold futures slid to $1107.70 in New York on Tuesday, giving away most of its earlier gains after touching a high of $1119.10. On the other hand, treasuries rallied as investors weighed the aftermath of the unexpected move.

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“It’s disappointing after one day of recovery to see oil roll back over, rates come back down and the market weaker,” Tom Wright, the New York-based director of equities at JMP Securities LLC, said by phone. “We spend a lot of time obsessing over Greece or Puerto Rico but China is a much bigger economy and a much bigger problem to the global economy and devaluing the currency is shaking people up.”

Coming to currencies, the PBOC move sparked fears of

Read more ... source: TheBitcoinNews