Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
https://alternativeeconomics.co/blogline/54906-bitcoin-explodes-higher-as-chinese-money-market-liquidity-collapses 3hrs ago
Bitcoin Explodes Higher As Chinese Money Market Liquidity Collapses
As one veteran trader noted something is very broken. After a massive short-squeeze stronger in offshore yuan during the day session, overnight yuan deposit rates have exploded 31.5 percentage points higher to 45% - just shy of the record highs - as China's liquidity crisis is front-and-center. At the same time, coincidence or not, Bitcoin has gone vertical, smashing through previous record highs.
The People's Bank of China injected CNY10 billion via seven-day reverse repos and skipped 14-day reverse repos at its open-market operations Thursday, according to traders.
The moves resulted in a net drain of CNY140 billion for the day.
The central bank has removed CNY435 billion in liquidity at OMMOs so far this week.
Utter desperation for liquidity has prompted deposit rates to explode.....
CRYTPO GOOONAAA MOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOON
Bitcoin Explodes Higher As Chinese Money Market Liquidity Collapses
As one veteran trader noted something is very broken. After a massive short-squeeze stronger in offshore yuan during the day session, overnight yuan deposit rates have exploded 31.5 percentage points higher to 45% - just shy of the record highs - as China's liquidity crisis is front-and-center. At the same time, coincidence or not, Bitcoin has gone vertical, smashing through previous record highs.
The People's Bank of China injected CNY10 billion via seven-day reverse repos and skipped 14-day reverse repos at its open-market operations Thursday, according to traders.
The moves resulted in a net drain of CNY140 billion for the day.
The central bank has removed CNY435 billion in liquidity at OMMOs so far this week.
Utter desperation for liquidity has prompted deposit rates to explode.....
CRYTPO GOOONAAA MOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOON
8,800 Incoming... I said it before, and say it again:
Indicators are meaningless when the Chinese are just printing fiat money infinitely. You have to keep in mind the Chinese have been printing unlimited amounts of fiat at a faster pace than anyone else, but try to prevent it from leaving the country on the official fiat money exchange rates. They will try to maintain a fiat exchange rate fix as long as possible, so they maintain purchasing power, but it is really just like Monopoly money to them. Bitcoin/crypto may be a way of escape.
8,800? I mean why not right?
Indicators are meaningless when the Chinese are just printing fiat money infinitely. You have to keep in mind the Chinese have been printing unlimited amounts of fiat at a faster pace than anyone else, but try to prevent it from leaving the country on the official fiat money exchange rates. They will try to maintain a fiat exchange rate fix as long as possible, so they maintain purchasing power, but it is really just like Monopoly money to them. Bitcoin/crypto may be a way of escape.
8,800? I mean why not right?
Yeah. Continuing devaluation and rumors of capital controls.
8,850 Why not??? Just print moar fiat! No problem!
It's not really the "money printing", its the loss of purchasing power (symptom of this though; devaluation and strengthening USD), and fear of being locked in to a devaluing currency. It's part of a bigger trend. Bitcoin is just a protocol and conduit.
The fixed exchange rate is about to break..... or is already breaking.
EDIT: Central bank can only hold the fix so long. They are already tapping into hundreds of billions reserves to try to hold the line (fix).