Is the Chinese Narrative Back? Renowned investor Brock Pierce predicts that China’s Bitcoin ambitions are back. But is Beijing really reopening to cryptocurrency?
Renowned investor and Tether co-founder Brock Pierce is predicting China’s shift to Bitcoin and the reopening of its digital doors to cryptocurrency. This is bigger than crypto ETFs.
It starts with the question: What if China stopped buying gold and switched to Bitcoin?
With the Fed tacitly admitting gold’s ascendancy over the dollar, Pierce foresees China, the arch-crypto nemesis of 2021, reversing its stance and embracing digital assets once more.
“Is China going to open up [to crypto]? … I’d say it’s inevitable,” Pierce told the South China Morning Post. “The question is not so much if, it’s a matter of when.”
Pierce hinted at new ventures in Hong Kong that should put the recent spot Bitcoin and Ethereum crypto ETFs that China approved to shame.
Bitcoin New Era Doesn’t Have to Do With Crypto ETFs
Bitcoin’s surge to $70,000 was a wet fart. It did very little to jolt markets. While cryptos like Ethereum and XRP rode the wave and flirted with ATHs, everything has slowed across the board.
From ETH slow bleeding around $3695, erasing much of its ETF hype, to Bitcoin barely up 1.16% on the month.
Moreover, nobody knows when or where the next catalyst for crypto will come.
You must realize…
Crypto searches and content views are at bear market lows.
The real money is very efficiently keeping this in the dark while they buy it all.
They won’t much longer. You think YOU want a 1 mil BTC? BlackRock will burn countries to get it. pic.twitter.com/fEsRwig4yh
— Alex Becker 🍊🏆🥇 (@ZssBecker) June 6, 2024
Increasingly, it doesn’t seem the next catalyst will come from the US (at least until the November elections)
It will come through regulatory arbitrage – the practice of loosening regulations and welcoming crypto innovation, which countries like the UK, India, and now China are beginning to do.
DISCOVER: How to Buy New Bitcoin ETFs in 2024 – Beginners Guide
China Stops Gold Purchases in May After Ending 18-Month Buying Streak
China’s central bank paused its gold buying spree in May after 18 relentless months. But even with the break, the value of their gold reserves shot up, thanks to record-breaking spot prices
“China is nowhere near done buying gold, but the pause also highlights they are humans, balking at the prospect of paying record prices,” commented Ole Hansen, Saxo Bank’s head of commodity strategy. “Overall, gold is still consolidating and the news will likely prolong that phase, but overall the long-term bullish outlook has not changed.”
In 2023, the PBOC emerged as the world’s top gold buyer, snapping up a record 7.23 million ounces, per the World Gold Council. Meanwhile, with Bitcoin treading water, China could slowly begin to see this as a golden buying opportunity
The Bottom Line: Is China the Future of Crypto ETFs and The Next Catalyst?
Adding fuel to the fire, Dubai’s Bybit just opened its doors to Chinese nationals abroad, letting them trade crypto freely. This could be a sign of growing crypto acceptance among Chinese expats.
“Bybit, one of the world’s top three crypto exchanges by volume, is pleased to announce the expansion of our service offerings to the overseas Chinese community,” the company stated. “This move is in response to the growing demand for secure, reliable, and user-friendly cryptocurrency trading platforms among Chinese expatriates and international Chinese communities.”
If American regulators don’t step up, Chinese ones will.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
