Shift

Bank

Bitcoin

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/chinese-investors-shift-attention-to-bitcoin-during-economic-struggles/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Chinese Investors Shift Attention to Bitcoin During Economic Struggles</a> 
As the Chinese economy faces tough times, local investors are turning to Bitcoin and other <a href="https://en.coin-turk.com/insights-on-bitcoin-and-ethereums-market-dynamics/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrencies</a>. According to a report by Chainalysis, the increasing inflow of funds into China’s over-the-counter (OTC) <a href="https://en.coin-turk.com/global-internet-outage-highlights-cryptocurrency-sectors-stability/" data-wpel-link="internal" rel="noopener noreferrer nofollow">crypto</a> brokers highlights this trend. The recently announced stimulus policies by the Bank of China could also contribute to the appreciation of Bitcoin.
<h2 id="chinese-investors-focus-on-bitcoin">Chinese Investors’ Focus on Bitcoin</h2>
The Chainalysis report reveals that Chinese investors were gravitating towards Bitcoin even before the announcement of the Bank of China’s stimulus policy. The study indicates that approximately $20 billion entered China’s OTC brokers every quarter, resulting in a total of $75.4 billion over nine months.
In 2021, China had prohibited the trading and mining of Bitcoin and other cryptocurrencies. However, this situation indicates that the demand for crypto assets, including BTC, remains high. Eric Jardine, Chainalysis’s cybercrime research lead, noted that these OTC services fall into a “gray area” in the country’s economy and added that the ban is applied loosely. Moreover, Chinese citizens can legally invest in cryptocurrencies through accounts opened in the Hong Kong Special Administrative Region.
<h2 id="btc-and-china-s-economic-policy">BTC and China’s Economic Policy</h2>
The President of the People’s Bank of China, Pan Gongsheng, recently lowered the reserve requirement ratio by 50 basis points and the short-term key interest rate by 20 basis points, creating a positive environment for Bitcoin. These measures may increase Chinese investors’ appetite for Bitcoin and other crypto assets.
Recent market analyses suggest that the price of Bitcoin could reach $100,000 due to China’s stimulus package and <a href="https://en.coin-turk.com/bitcoin-stays-around-60800-at-the-end-of-june/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency</a> trade with Russia. Market expert Dan Tapiero emphasized that the interest rate reductions in China are favorable for BTC. Raoul Pal, founder of Real Vision, also indicated that this quantitative easing would positively impact Bitcoin.
QCP Capital expressed optimism for Bitcoin, stating that the People’s Bank of China will likely implement further easing. China’s interest rate cuts follow similar reductions made by the Fed. These macroeconomic developments support predictions that Bitcoin could soon reach a new record level.
Historically, the fourth quarter has been the most profitable period for Bitcoin. We have observed how the markets reflected the historical downturn in the third quarter; now, prices need to move in the opposite direction.
In light of the current challenges facing the Chinese economy, the shift of investors towards Bitcoin could significantly impact the dynamics of cryptocurrency markets. This situation may lead to increased interest in crypto assets in both local and global markets. Monitoring this trend will play a crucial role in shaping investors’ future financial decisions.
The post <a href="https://en.coin-turk.com/chinese-investors-shift-attention-to-bitcoin-during-economic-struggles/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Chinese Investors Shift Attention to Bitcoin During Economic Struggles</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.

Chinese Investors Shift Attention to Bitcoin During Economic Struggles

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