The People’s Bank of China’s (PBOC) recent liquidity injection of 632 billion yuan (approximately $92 billion) has sparked a surge in the prices of Chinese crypto projects.
Industry Leaders Predict Chinese Money Will Ignite New Crypto Bull Market
Industry leaders, including Tron founder Justin Sun, believe that Chinese money will ignite a new crypto bull market in the coming months, with China-based cryptocurrencies like Neo, Conflux, and Flamingo up by over 20% as a result of the injection.
Last week, Twitter user “owen” shared a watchlist for Chinese cryptocurrencies driven by the narrative of a Chinese money-led bull run. Justin Sun also believes that Hong Kong is one of China’s experiment zones for crypto development.
Over the past few months, the country has changed its stance over the past few months to be more pro-crypto. Hong Kong’s Financial Secretary, Paul Chan, has committed to making the country a crypto hub. Regulators have released a consultation paper on a framework allowing retailers to trade crypto starting June 1.
If mainland China follows Hong Kong’s lead and softens its stance on crypto, many expect “big pumps” in the community.
The liquidity injection by PBOC is the most significant single-day liquidity injection and was made necessary due to a liquidity shortage created by loan demands in the economy after the reopening of COVID-19 restrictions. As the property sector struggles and exports weaken, analysts anticipate more aggressive easing moves from the central bank shortly.
In conclusion, the liquidity injection from PBOC has led to a surge in the prices of Chinese crypto projects, with industry leaders believing it will ignite a new crypto bull market.
Hong Kong is seen as a potential crypto hub, with regulators taking steps to allow retailers to trade crypto. If mainland China follows suit, it could lead to even more significant growth in the crypto market.