"Hong Kong, officially known as the Hong Kong Special Administrative Region of the People's Republic of China, is a city and special administrative region in South China, located on the eastern Pearl River Delta."
China has recently shown a rather oppressive stance towards Bitcoin and cryptocurrencies. The negative attitude towards blockchain technology and crypto began in 2017, when the country announced a ban on crypto trading.
This led to a snowball effect, with crackdowns on exchanges, causing prominent ones like Binance to relocate. Additionally, China banned mining, most likely around 2021-2022. However, surprisingly, China has now become crypto-friendly once again.
For instance, the capital city of China's Jiangsu province, Nanjing, has launched a new government-backed metaverse platform called the China Metaverse Technology and Application Innovation Platform. This move is expected to drive development in the sector throughout the country.
Moreover, there's Floki Coin, which gained over 10% after being featured on Chinese TV station CCTV-5. This positioning hints at China's increasing acceptance of cryptocurrencies. If you're feeling the scent of FOMO already, you're not alone. While some people are still bearish, waiting for Bitcoin to hit outrageous bottoms, like around $10,000, I remain bullish.
In fact, I've been bullish for a few months now. Despite the various corrections we've seen in Bitcoin and most altcoins since the trend reversal at $16K for BTC, I believe we are currently in a bull market.
I understand that each new cycle doesn't have to replicate the previous one, but if I were to make a prediction, I'd say that the period from 2023 to 2025 will resemble the one from 2015 to 2017.
This time, however, we can expect altcoins to make significant moves alongside Bitcoin, potentially driving its price to a new all-time high above $100K.
June 1st of this year marks the date when Hong Kong will allow retail and institutional crypto traders and investors to resume their activities. Huobi HK, for example, now offers crypto spot trading to clients in Hong Kong and has applied for a virtual asset exchange license. Other CEXs, such as BTSE, JPEX, and OKX, have also announced their entry into the Chinese market.
Regarding the regulation of web3 in Hong Kong, Huobi states, "Regulation of web3 in Hong Kong will contribute to the widespread adoption of cryptocurrencies on a global scale. Huobi will continue to collaborate with regulatory authorities in Hong Kong to support the development of a vibrant web3 hub.”
When it comes to technological progress, you either embark at the right time or stay on the sidelines, watching the train leave the station, perhaps never to return. While institutional entities may have the luxury of pulling back, for retail investors, getting in early is a god-given blessing.
It's worth noting that Hong Kong is home to 129,500 millionaires, 290 centi-millionaires, and 32 billionaires. Despite relatively poor growth over the past decade, the city-state remains one of the world's top financial hubs, with many of Asia's wealthiest businesspeople still based there.
Don't expect billions to pour out of Hong Kong into the market, but I would nevertheless mark June 1st of this year as the date, or better the approximate time when a new leg up in the crypto market will occur. We've had already plenty of time to accumulate and it's not the time again for the market to move up.
Don't forget that bear markets are born on greed and bull markets on disbelief. I see a lot of disbelief in crypto right now. What do you think?
Thanks for your attention,