Bitcoin price sails as China’s yuan sinks

The price of bitcoin is on a ten-week high, thanks to increased demand in Asia amid worries over the serious devaluation of the Chinese yuan.

This week, the yuan dropped it its six-year low against the U.S. dollar at 6.72 per dollar, which, according to Reuters, is the weakest rate since September 2010. In comparison, bitcoin saw a 3 percent jump in value—breaking the $630 ceiling. This is the popular digital currency’s strongest since July.

The weakened yuan was partly attributed to the week-long holiday in China, which celebrated the Chinese Golden Week that follows China’s national day. However, this isn’t the first time that the devaluating Chinese yuan has pushed the prices of digital currencies up.

In May, the price of the digital currency surged by as much as 15 percent, which some market participants partly attributed to the devaluation of Chinese yuan. Trades involving Chinese yuan are believed to account for about 95 percent of the current bitcoin trading volume this year, according to a CoinDesk research.