Amid Turmoil in Stock Market, Chinese Investors Turn to Bitcoin

According to reports, an increasing number of Chinese investors are turning to cryptocurrencies through platforms such as OKX and Binance, based in Hong Kong.

sevval25/01/20241 Mins read390

Amid Turmoil In Stock Market, Chinese Investors Turn To Bitcoin

Despite China’s crypto ban implemented since 2017, Chinese investors are actively seeking exposure to Bitcoin and other digital assets amidst the challenges faced by the country’s stock market. According to a Reuters report, between July 2022 and June 2023, the Chinese crypto market saw trading volumes reaching $86.4 billion, a figure distinct from the $64 billion trading volumes recorded in Hong Kong during the same timeframe.

Table of Contents

Amid Turmoil in Stock Market, Chinese Investors Turn to Bitcoin

In light of China’s economic uncertainties, prominent figures within Shanghai’s financial sector are opting to diversify their investment portfolios by allocating a significant portion to digital assets. Some Chinese investors interviewed by Reuters have even characterized Bitcoin as a “safe haven” asset. Additionally, disclosures reveal that several investors hold cryptocurrency holdings worth millions of yuan.

With China’s property and stock markets experiencing downturns, investors are turning to cryptocurrencies as a means to safeguard their wealth. However, navigating the crypto landscape in a jurisdiction with a ban presents its own set of challenges. As a result, Chinese investors are exploring various avenues, including crypto exchanges like OKX and Binance, as well as over-the-counter terminals, to facilitate Bitcoin transactions. These platforms, alongside others, enable transactions through popular fintech platforms such as Alipay by Ant Group and WeChat Pay by Tencent.

Chinese Authorities Encourage Cryptocurrency Trading Activities in Hong Kong

The significant downturn in China’s property and stock markets has prompted investors to seek alternative avenues for investment. The robust surge in Bitcoin prices and the broader crypto market over the past year have made them increasingly attractive options.

Furthermore, some analysts speculate that given the current economic challenges faced by China, Chinese officials may be endorsing crypto trading in Hong Kong. They cite significant opportunities within the crypto sector amidst China’s ailing economy. This strategic move also aims to uphold China’s influence in the global crypto market.

Sources:coinspeaker

Previous post Sygnum Wraps Up 40 Million Dollars Funding Round, Valued at 900 Million Dollars

Next post Bitcoin Put Call Options Ratio Pointing to Bearish Market

Written by

sevval

Şevval has been actively writing since 2022 and is a third-year mathematics student at Ankara University. Her interest in writing is shaped particularly around innovative technologies such as Web3, artificial intelligence, and blockchain. She closely follows developments in these fields and aims to convey complex topics to readers in a clear and engaging manner. She enjoys combining her mathematical knowledge with technology to create content and strives to raise awareness about the digital world of the future.

You must be logged in to post a comment.