As an analyst with a background in macroeconomics and experience in following the Chinese economy and cryptocurrency markets, I find the potential outlook of China’s economy with speculations of Quantitative Easing (QE) in the real estate sector to be an intriguing development. The possibility of this move being “very bullish for global liquidity” could have significant implications for Bitcoin (BTC) and Gold prices, as well as other assets perceived as hedges against inflation.
As a researcher studying the economic landscape, I believe the anticipated effects of Quantitative Easing (QE) in China’s economy could significantly influence Bitcoin (BTC) and gold prices, as well as market liquidity, over the next few months.
Bullish China Economy Looms
Dan Tapiero, the Founder and CEO of 10T Holdings, anticipates that a substantial build-up of capital in China’s market is imminent based on past experiences. We should remember how China’s real estate sector faced a downturn a few years ago, with China Evergrande leading the headlines, but was eventually rescued by the government.
Suddenely, the Chinese government is pondering over the use of Quantitative Easing (QE) to boost borrowing for China’s real estate sector. In simpler terms, QE could provide these companies with easier access to needed funds amid their liquidity struggles.
As a crypto investor, I’d say: “Using this measure comes with an advantage – it helps kickstart businesses. However, it’s important to keep in mind that releasing large amounts of capital could lead to economic flooding, which might negatively impact the value of fiat currency like the yuan.”
Tapiero is convinced that this action could significantly boost global liquidity. Consequently, Bitcoin and other assets considered safe havens against inflation, such as gold, might be propelled forward by this development.
According to Tapiero’s analysis, Chinese Real Estate stocks underwent a remarkable surge after a prolonged downtrend, which could lead to significant consequences. Meanwhile, based on his predictions, silver, ethereum, and the Nasdaq are potential candidates for experiencing an uplift as well.
Crypto Enthusiasts Perceives Bitcoin as Hedge Against Inflation
The idea that Bitcoin serves as a shield against inflation is becoming increasingly popular in various economies. This topic resurfaced once again following the recent publication of the US Consumer Price Index (CPI) by the Labour Department. Notably, China’s real estate quantitative easing (QE) measures have added fuel to this discussion.
As an analyst, I observe the Bitcoin market and currently notice a price point of $66,450.96, representing a 0.89% growth over the past 24 hours. The surging curiosity and increased involvement in the Bitcoin ecosystem could potentially trigger significant activities within it, possibly propelling the price to unprecedented heights.
It’s important to acknowledge potential challenges arising from market volatility that could emerge unexpectedly.
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2024-05-17 18:33