Yet again, in order to stabilize the economic pressure, the Chinese Central Bank announced it would inject 1.2 trillion yuan ($174 Billion) into the market on Feb 3. This year’s liquidity injection will be 900 Billion yuan more than 2019, a clear indication of the weakening fiat currencies around the world.
According to demand and supply rule, once the supply exceeds the demand, the price is going to decline. This will lead to more people looking for safe havens to secure their future investments.
Bitcoin Comes Through
With the recent bull rally in Bitcoin market price, confidence with the crypto asset has steadily increased as observed with the overall valuation. This could lead to Bitcoin’s demand experiencing a sharp uptick, therefore catalyzing the ongoing bull rally.
China being a major role player in the crypto space, the mass inclination to acquiring Bitcoin will see the market price surpass the previous all-time high of $20,000. It will be a matter of time when the market reacts, however, due to the coronavirus outbreak fears, the response time might be slower than before.
The Bigger Picture
Bitcoin and other altcoins enjoy a brighter future considering that most central banks are heading the same route as the Chinese. A few weeks ago, the Feds announced to take a similar direction in order to offset the current debt imbalance.
In addition to this, the demand for gold has reduced which is a great safe-haven competitor with Bitcoin. With the gold market price at the time of reporting this news experiencing a strong resistance at $1580 and bouncing back on the downward trend, it is a positive indicator that the demand for Crypto assets, especially Bitcoin will sharply increase.
As days come closer to Bitcoin halving, a conducive environment for bulls to thrive is being observed from all angles.
Depending on how the Chinese stock market responds to this unfolding, the crypto space will be eagerly waiting for a negative response to take advantage and shoot up. It is expected that if Bitcoin skyrockets, other crypto assets will follow suit.
With most crypto analysts agreeing on the current bulls winning the fight, the next Bitcoin breakout will be enormous and likely to hit $10k. As the uptrend matures and gets supported by different indicators, it will be a relief to coin holders who will be big beneficiaries of the year’s events.
