The change in trends in the Chinese stock market and the deep uncertainty among investors in that country is awakening interest in cryptocurrencies as a haven of value.
Amid the national economic downturn, more and more Chinese investors are turning to cryptocurrencies, especially Bitcoinas a safe haven of value.
This crisis derives from idiosyncratic factors of the Chinese economy, as explained Ignacio Sniechowskihead of research at GrupoIEB a Ambit. A crisis that finds its genesis with the “extreme zero COVID policy implemented by the regime and followed by a saga of bad news,” says the analyst.
According to Sniechowski, this bad news for the Chinese market shakes the foundations of important sectors such as that of real estate – which represents a very significant percentage of the Gross Domestic Product (GDP) of said country -, a drop in the GDP growth rate, increasing unemployment – mainly in the segment of younger workers. The measures that the Asian giant has been taking to stimulate its economy “do not seem to have any effect,” warns the analyst consulted by this medium.
Bitcoin, China and investors operating from the gray
Investors are accessing cryptocurrencies through unconventional means and operating in a regulatory gray area due to the decline in the stock and real estate markets. People are operating on sites like OKX and Binance despite China’s ban on cryptocurrency trading and strict money movement regulations.
Taking advantage of Hong Kong’s friendlier climate for cryptocurrencies, branches of major Chinese financial institutionssuch as the Bank of China and China Asset Management, are investigating companies linked to the crypto ecosystem.
Thus, and due to economic uncertainty, Chinese investors are finding in digital assets such as Bitcoin, a potential instrument to overcome the obstacles of the traditional market. This trend could have a favorable effect on Bitcoin prices.
Source: Ambito
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