Over the last week, price moves in the bitcoin market have closely tracked performances in the U.S. dollar and Chinese yuan. All of this shows bitcoin is solidifying its position as a true macro force in the financial markets.
Bitcoin Correlations Are Strengthening
A recent tweet from Ceteris Paribus pointed out two important market moves, as BTC/USD bounced from the August 2nd lows at $10,365 while USD/CNY rallied to ¥6.9479. Three days later, even larger moves occurred in the renminbi as USD/CNY was pegged at an opening rate of ¥7.0120 before moving to highs of ¥7.0513 during the U.S. session.
This move came as BTC/USD bounced from August 5th lows at $10,973 en route to highs of $11,939 late in the U.S. session.
Interestingly, this is actually the third event like this which has happened over the last week, as an earlier precursor occurred on August 1st. On this day, the USD/CNY currency pair bounced from lows at ¥6.8821 while valuations in BTC/USD found strong buyers at the $9,875 level.
When BTC/USD and USD/CNY…