The potential outlook for the Chinese economy and Quantitative Easing (QE) speculation in the region’s real estate sector are expected to increase in the coming months. Bitcoin It seems likely to have an impact on (BTC) and Gold prices and liquidity.
Rise in Chinese Economy is Approaching
According to Dan Tapiero, Founder and CEO of 10T Holdings, a significant capital accumulation in the Chinese market may be imminent. It is worth recalling how China’s real estate sector went bankrupt with China Evergrande a few years ago, but was rescued by the government at the time.
Suddenly, the Chinese government is considering implementing QE to encourage borrowing efforts by real estate companies in China. To put this in perspective, QE is a situational economic measure that could allow liquidity-strapped Chinese real estate developers to access more funds.
The advantage of using this measure lies in its ability to bounce businesses. However, this does not eliminate the pressure that the release of capital can put on fiat money. A flooded economy (in terms of liquidity) can directly contribute to the devaluation of the yuan.
Tapiero believes this move will be “very positive for global liquidity.” If this turns out to be the case, it could act as a catalyst for BTC as well as other assets that are perceived as hedges against inflation, such as Gold.
Tapiero emphasized that the “explosive rise in Chinese Real Estate stocks after more than a decade of bear market” has caused a lot of pain. According to Tapiero’s guess, Silver, Ethereum and even Nasdaq will not be left out of the possible rise.
Crypto Enthusiasts Perceive Bitcoin as a Hedge Against Inflation
Bitcoin’s view as a hedge against inflation is rapidly gaining traction in different economies. The release of the United States Consumer Price Index (CPI) by the Labor Department two days ago has revived the issue once again, this time around China’s real estate QE.
Bitcoin price is currently at $66,450.96, up 0.89% in the last 24 hours. Speculation is that a potential burst of activity in the leading cryptocurrency’s ecosystem due to the sudden increased interest in the coin could push its price to new highs.
However, one should not underestimate the headwinds that may arise down the line due to unpredictable market volatility.
