Specifically, Yasuo Matsuda from FXCoin reportedly shared that Bitcoin (BTC) would gradually gain a positive reputation with China-based nationals, dealing with national security laws enacted by local authorities, as an attempt to ease the ongoing health crisis throughout the globe.
Matsuda reportedly believed that Chinese citizens would grow “frustrated with the recession of the domestic economy”, thus trying to search for a way out.
China’s strong position on legislation like the enactment of the Hong Kong national security law has been conspicuous, but the impact of the coronavirus has caused the domestic economy to fall into a recession. The incentive to move assets abroad is high, and if the legislation leads to economic sanctions from the United States, BTC will likely become even more popular.
Matsuda further shared that Bitcoin and Yuan reportedly do not present this correlation most of the time, but a yuan depreciation could be a turning point for more Bitcoin purchase from Chinese investors this year.
…when the yuan goes down, it incentivizes residents in China to move their assets overseas because their values decline in dollar terms. This causes further depreciation of the yuan. However, as the Chinese regulation of capital flight is very strict, some see Bitcoin as the way to go. That is why BTC functions as a flight-to-safety asset.