U.Today – (BTC) could benefit from China in a rare move for a market with a large share of real estate. While lagging behind the United States in capital for market liquidity, China remains an important region that can influence the market recovery.
Sentiment by Dan Tapiero
While QE is an economic measure that works on a situational basis, cash-strapped Chinese property developers can now gain access to more operating funds. Although this measure is expected to boost businesses, the release of capital as liquidity could put even more pressure on the fiat currency.
The potential fiat devaluation that will follow the flooded economy raises a potential catalyst for Bitcoin and other major inflation hedges: gold. For Dan Tapiero, “the explosive rise of Chinese property stocks” after more than a decade of a long bear market caused a lot of pain.
This new turn is positive to boost global liquidity, on which Bitcoin can also rely. In its projection, other assets and risk stocks such as the tech-heavy NASDAQ Composite will also benefit overall.
Direct impact of Bitcoin
However, Bitcoin is known as one of the most resilient assets in the world. Once market prices factor in the impact of Chinese real estate QE, as Tapiero teased, the real BTC price discovery can begin.
In the grand scheme of market prospects, Tapiero is optimistic that Bitcoin is destined to rise from $90,000 to $200,000 in the long term.
This article was originally published on U.Today.
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