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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.
- Sep 11, 2024 05:11 UTC
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China’s Real Estate Crisis Could Trigger A Crypto Crash, Analyst Warns
Crypto analyst Wise Advice warns of a looming global financial crisis, primarily driven by China's real estate market.
The crisis could have significant repercussions for the cryptocurrency market, especially Bitcoin.
Wise Advice remains optimistic about the long-term prospects for cryptocurrencies.
The crypto world has had its fair share of storms, from the Mt.Gox collapse to the Grayscale crisis.
But now, crypto analyst Wise Advice is sounding the alarm on a much bigger threat: China’s troubled real estate market. He believes this could have an even bigger impact than Federal Reserve rate cuts or Donald Trump’s presidential campaign.
Is the market on the brink of a devastating crash? What next for investors? Read on for answers.
What’s Happening with China’s Real Estate Market?
Wise Advice points out that China’s real estate stocks have dropped to their lowest level since the 2008 financial crisis. After Evergrande’s bankruptcy in August 2023, Bitcoin fell by 20%. With China’s real estate sector now making up over 18% of global GDP (up from just 4% in 2008), the stakes are much higher. U.S. companies and banks are also heavily involved in this market, raising concerns that a crash in U.S. stocks could drag Bitcoin and the broader crypto market down with it.
Is There Hope for Crypto?
Despite the risks, Wise Advice believes there might be a silver lining. If stock markets start to crash, governments could respond with quantitative easing (printing more money) and faster interest rate cuts. This could actually help Bitcoin and other cryptocurrencies in the long run. Though September may bring volatility, Wise Advice is optimistic that crypto will recover, even if there are some dips in the short term.
How Bad Could the Crisis Be?
The growing alarm on X highlights the potential for global ripple effects. With China’s massive role in the world economy, this crisis could spell trouble far beyond its borders, impacting markets and investors worldwide.
Bitcoin has been in a downtrend since March, despite increasing demand from institutional investors. A market crash fueled by rising carry trades could further shake up the crypto market.
There’s still hope. Expected interest rate cuts in the U.S. this month could spark a major bullish trend in the crypto space, offering a potential recovery.
Also Read: Bitcoin Price Today Drops Again — Can It Rebound in Q4?
Despite fears of another worldwide financial crisis, are you bullish or bearish on Bitcoin? Tell us why.
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