The Bitcoin price soared from $10,505.28 to $11,773.40 over the weekend, an increase of roughly 12%. Most of the price action took place early Monday morning, as the Chinese yuan dropped sharply against the U.S. dollar, trading at 7 yuan per dollar for the first time in more than a decade.
Jeremey Allaire, who is the CEO of global financial services company Circle, appeared on CNBC Monday morning to discuss the sharp rise in the Bitcoin price and how it relates to what’s going on in China.
The Impact of the Yuan Devaluation
At the start of his interview on CNBC, Allaire was asked by Andrew Ross Sorkin to explain how much of Bitcoin’s recent price movements were driven by the devaluation of the yuan.
“I think very clearly the overnight moves — and what we sort of are seeing right in front of us right now — you can very clearly see some macro correlation there,” said Allaire. “I think the broader theme of Bitcoin specifically, crypto more broadly, participating in these global macro forces is becoming more and more clear. Rising nationalism, rising amounts of currency conflicts, trade wars — these all, obviously, are supportive of a non-sovereign, highly secure digital store of value. And that’s clearly been a fundamental thesis here for Bitcoin and continues to play out, and it looks like it will continue.”
To Allaire’s point, many Bitcoin market commentators have pointed to various macroeconomic trends as bullish indicators for Bitcoin, especially in the context of the crypto asset’s upcoming halving event.