Advertise
Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- May 31, 2024 10:33 UTC
-
Despite Ban, China’s Crypto Market Booms as Investors Seek ‘Safe’ Alternatives
China's financial policies, including issuing long-term bonds, are impacting the global crypto market.
Despite the ban, China's crypto market is booming, with high transaction volume and investors seeking alternative assets like Bitcoin.
Hong Kong's potential Bitcoin ETF launch and China's economic challenges may lead to significant price surges and market movements.
In his latest analysis, renowned cryptocurrency expert Lark Davis dived into China’s significant influence on the global cryptocurrency market, particularly in light of recent developments in the country’s financial policies.
China’s announcement of issuing $140 billion in long-term bonds has captivated global investors. These bonds, spanning 50 years, aim to tackle pressing economic issues like government debt, real estate challenges, and subdued consumer spending.
Understanding China’s Crypto Market
Despite China’s ban on cryptocurrencies, Davis reveals a thriving crypto market within the nation. Data from Chainalysis shows an impressive $86.4 billion in raw transaction volume recorded in China between July 2022 and June 2023, surpassing Hong Kong’s trading figures.
Notably, China boasts a higher proportion of large retail transactions compared to the global average, indicating robust crypto activity.
Bitcoin ETFs Shine in Hong Kong
The impending launch of Bitcoin Exchange-Traded Funds (ETFs) in Hong Kong, with accessibility extended to mainland China via Stock Connect, presents a significant opportunity. Davis suggests that this development could fuel increased demand for cryptocurrencies, as Chinese investors seek alternative assets amid challenges in the property market.
Bitcoin and gold emerge as favored investment options amidst economic uncertainties.
Rise of Bitcoin in China
Demand for Bitcoin in China has grown because other investments are struggling. Bitcoin has surged 50% since mid-October. The Chinese stock market has been the worst in the world, with the CSI Index down 35% over three years, and company earnings missing forecasts for ten quarters. Once seen as a safe bet, the property market is also in a slump. As a result, Chinese investors are turning to Bitcoin, viewing it as a safe haven.
Insights from Industry Players:
- Michael Wang, Crypto Trader: Wang highlights the substantial daily volumes, reaching millions of yuan, indicating China’s strong interest in cryptocurrencies.
- Charlie Wong, Equity Analyst: Wong speculates that Chinese authorities are indirectly supporting crypto trading in Hong Kong to maintain a presence in the thriving crypto markets of Singapore and New York.
Is Bitcoin truly the future of finance? Tell us what you think.
Also Check Out: Top Reasons Why the Crypto Market is Down Today
Yes 
No 
