A new trading week is beginning today with the US and UK markets closed for Memorial Day and the spring bank holiday respectively. Bitcoin is trading below $35,000 and Asian markets are off to a strong start for the trading session on the back of Chinese economic data releases.
Early this morning, China released composite purchasing managers’ indices (PMI), as well as their PMI manufacturing and non-manufacturing reports. The figures from the dragon’s land showed that large companies outperformed the smaller companies, which fell below 50.
The input price sub-index reached 72.8 in May. This indicator recorded the highest level since November 2010 and the PMI producer prices hit another record high at 60.6 in the face of a 54.2 forecast.
Stronger demand in export prices, as well as rising commodity prices, caused China’s factory activity figure to fall in May. China’s State Council has indicated that it will work to stabilize these figures.
At the time of writing, the yuan was hovering around 6.3565 to the US dollar and the yen was at 109.67 to the U.S. dollar, up 0.2%.
Bitcoin below 35K
Amid pressure from the Asian mainland to ban cryptocurrency transactions, Bitcoin hovered below €35,000, gradually recovering from the fall triggered by Beijing in previous weeks. It seems that Chinese investors have not been heavily affected by the restrictions China intends to impose on digital assets.
According to state media, in 2017 it was estimated that about 7% of the world’s Bitcoin was held by local investors. Authorities now believe the figure is much higher, but China’s exchange bans have caused Asian investors to become more cautious. They started using private networks and two-step fragmentation of transactions making them difficult to trace. However, Chinese authorities have started to put pressure on investors by forcing them to either uninstall the apps from their mobile phones or calling them to testify at the police station.
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