In short: China is reportedly considering a comprehensive package of stimulus measures, including interest rate cuts and support for real estate and domestic demand, to revive its economy. This has led to speculation that the Chinese stimulus could boost Bitcoin and other altcoins, which could go directly into "unregistered securities," according to cryptocurrency expert Lex Moskovski. While it remains unclear when the stimulus measures will be announced or implemented, the liberal Hong Kong's recent opening for cryptocurrency trading by retail investors may also have interesting implications for Bitcoin and other altcoins.
Our quick analysis:
China is reportedly considering a major stimulus package to revive its economy following the effects of the COVID-19 pandemic. The proposed measures are said to include at least twelve measures to support various areas, with a specific focus on the country's troubled real estate market. Amidst these discussions, renowned expert Lex Moskovski has suggested that the Chinese stimmies could go directly into "unregistered securities," alluding to the classification of altcoins by SEC chairman Gary Gensler.
While the package's final scope and composition remain unclear, the stimulus measures and the recent opening of Hong Kong to cryptocurrency trading by retail investors could be an interesting development for the crypto market. Nevertheless, it remains to be seen how much Bitcoin and other cryptocurrencies will benefit from the stimulus package.
While the environment in China is vastly different from that of the US, the recent stimulus may have a similar effect on Bitcoin and crypto as witnessed in the US. The $1,200 stimulus checks had a measurable impact on Bitcoin, resulting in a “significant increase" in Bitcoin purchases of $1,200 in April 2020. Moreover, the central bank noted that overall Bitcoin trading volumes saw an increase of about 3.8 % after the distribution of the first stimulus checks.
Interestingly, as NewsBTC Chief Analyst Tony “The Bull” recently pointed out, Bitcoin's historic rallies have occurred before major monetary stimulus. With China currently considering a massive stimulus package, it will be fascinating to see whether the Chinese authorities' plans will translate into bullish returns for the crypto market.
In summary, China's proposed stimulus package and Hong Kong's recent opening to cryptocurrency trading may be an interesting development for the crypto market. With the Chinese authorities mulling over a package of stimulus measures, it will be fascinating to gauge the potential impact of the package on Bitcoin and other cryptocurrencies. Could this be the new bullish narrative for crypto? Only time will tell.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Our quick analysis:
China is reportedly considering a major stimulus package to revive its economy following the effects of the COVID-19 pandemic. The proposed measures are said to include at least twelve measures to support various areas, with a specific focus on the country's troubled real estate market. Amidst these discussions, renowned expert Lex Moskovski has suggested that the Chinese stimmies could go directly into "unregistered securities," alluding to the classification of altcoins by SEC chairman Gary Gensler.
While the package's final scope and composition remain unclear, the stimulus measures and the recent opening of Hong Kong to cryptocurrency trading by retail investors could be an interesting development for the crypto market. Nevertheless, it remains to be seen how much Bitcoin and other cryptocurrencies will benefit from the stimulus package.
While the environment in China is vastly different from that of the US, the recent stimulus may have a similar effect on Bitcoin and crypto as witnessed in the US. The $1,200 stimulus checks had a measurable impact on Bitcoin, resulting in a “significant increase" in Bitcoin purchases of $1,200 in April 2020. Moreover, the central bank noted that overall Bitcoin trading volumes saw an increase of about 3.8 % after the distribution of the first stimulus checks.
Interestingly, as NewsBTC Chief Analyst Tony “The Bull” recently pointed out, Bitcoin's historic rallies have occurred before major monetary stimulus. With China currently considering a massive stimulus package, it will be fascinating to see whether the Chinese authorities' plans will translate into bullish returns for the crypto market.
In summary, China's proposed stimulus package and Hong Kong's recent opening to cryptocurrency trading may be an interesting development for the crypto market. With the Chinese authorities mulling over a package of stimulus measures, it will be fascinating to gauge the potential impact of the package on Bitcoin and other cryptocurrencies. Could this be the new bullish narrative for crypto? Only time will tell.
Image provided by Unsplash
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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