Chinese demand drives bitcoin to 10-week high as yuan hits six-year low

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By Jemima Kelly

LONDON Oct 11 The price of web-based digital
currency bitcoin jumped to a 10-week high on Tuesday,
as worries about a further weakening of the yuan drove increased
demand from China.

The Chinese currency hit a six-year low of 6.72 yuan per
dollar on Tuesday — the first day of trading following a
week-long holiday — after the central bank set a weaker
guidance rate, fuelling market expectations that it may allow
further depreciation.

State-owned Chinese banks leapt to defend the 6.7 level when
it was breached in mid-July but have not been seen buying yuan
heavily so far this week, adding to questions over whether China
was allowing the currency to resume its descent, after steadying
it through much of the summer ahead of major political events.

Bitcoin is a web-based “cryptocurrency” that can move money
across the globe quickly and anonymously with no need for a
central authority. That makes it attractive to those wanting to
get around capital controls, such as China’s.

Around 95 percent of all bitcoin trading is done via

Read more ... source: TheBitcoinNews

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