The injection of water from the People’s Bank of China was reportedly behind the price for Chinese crypto services on Monday.
Industry leaders, including Tron founder Justin Sun, have said that the Chinese currency will fuel a new crypto bull market in the coming months. Today, the income of cryptocurrencies from China such as Neo, Conflux, and Flamingo is more than 20%.
Due to the news of China’s silver led bull run, Twitter user “owen” shared a checklist for Chinese cryptocurrencies last week. Hong Kong, showing the ground for China?
Justin Sun thinks that Hong Kong is “one of the experimental centers of crypto development in China.” In the past few months, the country has changed its position to pro-crypto. Paul Chan, Hong Kong’s finance secretary, has pledged to work to make the country a crypto hub.
Today, the Hong Kong regulator also released an advisory document on the process allowing traders to trade crypto from June 1. 1.
Probably because China knows they need a seat at the crypto table, and allowing HK to be the gateway for that allows them to do it in a controlled manner
— Rev (🍆,💦) (@TheReviken) February 18, 2023
China’s central bank injects $92 billion into the market
According to a Bloomberg report, the People’s Bank of China (PBOC) pumped 632 billion yuan (about $92 billion) into the market through bailout deals. This is the largest rainfall in one day.
When the economy reopened after the COVID-19 restrictions, the credit system created a financial crisis. Therefore, the PBOC should inject the money to ease the water crisis in the economy. With the domestic sector struggling and exports slowing, analysts expect a more aggressive monetary policy from the central bank. Locals think that the Chinese population decline will lead to the next bull.
