Analysis: Class A Shares are siphoning money from the crypto market, but the rebound may not last
Bitget2024/10/07 08:48
On October 7th, the Chinese stock market rebounded under the promotion of government stimulus policies, but this rise may suck funds away from the cryptocurrency market, affecting the rise of Bitcoin and other Asian markets. Since September 24th, the Shanghai Composite Index has risen by more than 20%, reaching a new high since May 2023. However, the price of Bitcoin is still hovering around $64,000 after China's stimulus policies, and has maintained a consolidation period of 50,000 to $70,000 for six months. Despite the Chinese government's economic stimulus plan of more than 7.50 trillion yuan, which is widely regarded as super good news for Bitcoin and other risky assets, the price of Bitcoin has not risen significantly. Danny Chong, co-founder of the Singapore Digital Asset Association, said that this capital transfer may be temporary, and once the upward trend of the Chinese stock market stabilizes, it is expected that funds will flow back into the cryptocurrency market.
Traditional market analysts believe that China's latest stimulus measures have not solved the fundamental economic problems and may not lead to a long-term rise in the stock market. TS Lombard pointed out in a report on October 2nd that any attempt to increase lending and leverage risk-taking may fail unless some fundamental issues are addressed, such as repairing the balance sheet of banks. BCA Research also stated that the rise in the Chinese stock market may not be sustainable.
0
0
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!
You may also like
Data: 6 Hong Kong virtual asset ETFs today's turnover of 19.527 million Hong Kong dollars
Bitget•2024/10/07 08:54
The Bank of Korea is expected to cut interest rates by 25 basis points on October 11
Bitget•2024/10/07 08:51
Trending news
MoreCrypto prices
MoreBitcoin
BTC
$63,124.77
+1.75%
Ethereum
ETH
$2,447.77
+1.09%
Tether USDt
USDT
$0.9998
-0.01%
BNB
BNB
$570.37
+1.26%
Solana
SOL
$146.51
+1.80%
USDC
USDC
$0.9999
-0.01%
XRP
XRP
$0.5332
+0.60%
Dogecoin
DOGE
$0.1117
+2.29%
TRON
TRX
$0.1548
+0.47%
Cardano
ADA
$0.3567
+1.98%
Bitget pre-market
Buy or sell coins before they are listed, including SCR, MAJOR, OGC, MEMEFI, and more.
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new Bitgetters!
Sign up now