Bitcoin’s place in China has essentially always been guaranteed, even though the Chinese government is quite averse to the asset. Trading Bitcoin and most other decentralized digital assets are still outlawed in China. Regardless, the country’s crypto community is still very vibrant as Google Trends shows interest is set to peak soon.
According to data from Google Trends, the interest in ‘Bitcoin’ queries will very likely reach a perfect 100 score before the end of the week. While it might be difficult to be sure why interest is spiking, the upcoming Bitcoin halving less than a month away is a strong factor. Interest in Bitcoin usually increases in the days leading up to a halving as people expect to make a killing of Bitcoin investments.
The spike in China is also interesting, considering the current coronavirus pandemic. As economies worldwide feel the effects of the pandemic, people are looking into alternative channels for both savings and investments.
Earlier this month, the Chinese government’s 10-year yield crashed to levels not seen in about 18 years, since 2002. In addition to this, some people are looking into stock funds, as opposed to the more popular money market funds. While the stock funds are a lot riskier, the possibility of high yields is enticing, especially since most other markets are largely depleted.
In general, the situation seems to be paving the way for Bitcoin, which qualifies as very high risk but could also bring in hefty returns. As financial markets continue to plunge, Chinese investors seem to be ignoring the risk with Bitcoin and stock funds, hoping that they will bring in better figures.
The current situation in China with Bitcoin interests mirrors the uncertainty seen in the heat of the trade war between the US and China last year. Interest in Bitcoin also spiked, because the tariffs going back and forth between both countries was predicted to be detrimental. Chinese investors began to look to Bitcoin as the Yuan began to plunge.
So far, China’s economy is predicted to plunge 6.8% this quarter, with a 3% plunge in its GDP. All of the uncertainty with the traditional markets and investment, coupled with the upcoming halving, might turn out good for Bitcoin.
