China stocks are propelling, just like crypto. It is bullish for Bitcoin
By Luke Flowers – Cryptocurrency Speculator
Over the past couple of weeks, the world witnessed some dramatic moves in the Chinese stocks. According to experts, Chinese retail traders are actively following the high-risk, high-return approach when investing in traditional assets. As a result, it is expected that the crypto market may observe an upward movement.
Chinese stocks are growing and the technology along with healthcare are leading the gains. With most stocks having a green label at time of writing, more and more people are opening a stock account.
Chinese banks are also withdrawing funds from the broader financial system to prevent a bank run and potential deflation of the Yuan. This is exactly what happened in 2014-2015, at that time Chinese stocks were performing at their record levels and billion-dollar IPOs were attracting media attention.
According to CryptoSlate, China is already pushing large financial transactions for its digital yuan program, which will launch in 2022. China has hopes that many citizens will begin to buy crypto with the introduction of the government backed digital asset.
China has been a significant player in the international digital currency and blockchain ecosystem. Even though people in the country do not buy and sell Bitcoin or other cryptocurrencies, its digital yuan project is one of the largest CBDC rollouts in the entire world. On the other hand, the Blockchain Service Network remains a more prominent blockchain initiative that is backed by the government.
After observing the recent rise in Chinese stocks and Chinese Index products, experts suggest that it is bullish for cryptocurrencies such as Bitcoin, possibly suggesting that users could be looking to buy Bitcoin.
However, not everyone accepts this bullish sentiment for digital currencies. According to some experts, dull crypto markets can cause retail traders to go for more volatile traditional assets during their crypto trading and crypto buying.
Regulated or not, Cryptocurrencies such as Bitcoin remains severely dominated by Chinese investments, however recent growth of Chinese stocks could attract more to use this traditional asset as opposed to buying Bitcoin or another cryptocurrency.