In the past one week, the Chinese local market has experienced a sharp nosedive, however, in the crypto space, especially for Bitcoin, it has enjoyed an increase in its trading price, therefore resulting in its current bull rally. Observing the China A50 index, it has been in decline, and with China being a global economic hub, a lot of investors worldwide will be looking at its performance.
With this in mind, it is easier to explain the huge investment migration to the crypto space as seen with the fresh Bitcoin market valuation and sharp volume uptick. Most people who had enormously invested with the top 50 Chinese companies as listed by the stock exchange market, have sold their shares due to lack of confidence with them.
Possible Scenario: Since nature abhors a vacuum, the investors would eventually seek better safe-havens, and as a result, Bitcoin came in place as the most favorable, thus its bull rally.
Rumors of how the coronavirus outbreak pressure would affect the price of Bitcoin has been refuted on several occasions.
Almost all crypto assets have experienced a fair share of the recent crypto bull rally, where different investors have gone for diverse digital assets.
Chinese local market correlated with crypto assets?
The question is as simple as it seems, and at the same time, complicated to answer with a finite thought. At the moment, we are certainly sure that a huge number of Asian investors are great players in the crypto space.
The next bull run in the crypto space has always been expected, irrespective of an economic recession or not. This is supported by the limited supply of coins in circulation.
It’s a huge fluke that the bull rally happened after the Chinese market slowdown and the coronavirus outbreak. This leaves analysts with speculations whether, as gold is to the dollar, are crypto-assets linked to the Chinese local market?
The only means of getting an answer to these nagging questions is perseverance and observing the market keenly. As the world fights the deadly coronavirus and the Chinese stock market recovers, it will be feasible to relate the two, therefore offering crypto enthusiasts and investors with clear market insight.