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Question #482

How did the surge in the Chinese yuan to its highest value against the dollar since May 2023 influence Bitcoin trading between $85,000 and $90,000?

Category: General
The yuan’s rise boosted global Bitcoin buying, pushing prices above $90,000
A stronger yuan led Chinese miners to sell BTC in large volumes, crashing it below $85,000
A stronger yuan diverted Asian capital, reducing demand and keeping Bitcoin within that range

Why is this the correct answer?

This is correct because when the yuan strengthens, Asian investors often prefer local currency assets, leading to less capital flowing into Bitcoin and muted price movement between $85,000 and $90,000.

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