China’s Domination of the Bitcoin Market

By any measure, Chinese users appeared to be the force behind fluctuations in the global Bitcoin market in 2013, contributing to the market’s miraculous peak and recent downturn. First, it is clear that, throughout 2013, there was a high correlation between renminbi’s (RMB) “share of volume of all Bitcoin exchanges and price of Bitcoin”. This […]

Causes of China’s Inflow of Hot Money

Part 3 of China’s “Hot Money” Problems. While there may be some uncertainty about the precise amount of “hot money” flowing into China, there appears to be a general agreement as to why speculators are moving their capital into China. Analysts point to two key factors: (1) the relative interest rates in China and the […]