Sirwin
Sirwin

Why is China shaking cryptocurrencies?


You may not be aware of this, but China has announced that it will continue to do so diligently.

 

Why such a decision?

China is currently experiencing a serious liquidity crisis. The Communist government is trying to anticipate a possible monetary liquidity crisis. This decision follows the bankruptcy of Evergrande.

Many Chinese players have tried to diversify their monetary assets by buying different currencies. This phenomenon has shown to be very powerful in the crypto market. Many Chinese have taken a position in the cryptocurrency market to diversify and secure part of their capital.

Why is the market shaking?

Many analysts were alarmed by the Chinese government’s decision. Yet this is not the first time such a decision has been made in China. In reality, this is the fifth time.

The first announcement had reduced the market by 50% then 25%, 25%, 15% and finally, the last announcement to generate a decrease of 8.4%. This announcement is therefore to be taken with much hindsight because a lot of Chinese are already no longer on the cryptocurrency market. For those who are still there, they use tools that make their supervision by the communist authorities very complex. The proportion of Chinese users relative to the rest of the world has also decreased compared to previous years.

How to react?

In my opinion, we should not panic, but this type of event is likely to happen again and who knows perhaps with other countries. The current maturity of the crypto market is beginning to emerge. More and more serious players are entering the market, the entire ecosystem is becoming mature and the fundamentals are green.

As far as China is concerned, it is simply locking itself in a path of total control of its population, and recently the government has been trying to do the same with the economy. Bitcoin undergoes these measures in collateral ways but this will not prevent its development in liberal democracies that look at it more kindly or that sometimes see it as a real opportunity.

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Galaxie Crypto
Galaxie Crypto

Crypto lover - YouTuber


Galaxie Crypto (ENG)
Galaxie Crypto (ENG)

This blog is the English version of my initial bolg. The visibility of my blog in French is very limited. My goal in this blog will be to popularize or condense information about cryptocurrencies. If I make mistakes in English, please help me improve! Let me know in the comments.

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