Editor's PiCK
[Analysis] "China's Economic Stimulus Could Be a Catalyst for a Virtual Asset Market Rally"
Summary
- It has been analyzed that China's economic stimulus could act as a catalyst for a rally in the virtual asset market if implemented.
- The rebound in U.S. Treasury yields indicates that investors’ risk aversion is easing and is interpreted as a signal of renewed upside potential for the altcoin market capitalization.
- It has been forecast that if the People's Bank of China injects liquidity, there could be direct capital inflow into the virtual asset market, potentially driving prices to new all-time highs.
Amid the rise in U.S. Treasury yields, there is an analysis that China's economic stimulus could serve as a catalyst for a rally in the virtual asset (cryptocurrency) market.
On the 18th (local time), Cointelegraph analyzed, "The U.S. 5-year Treasury yield fell to 3.74% on August 4, the lowest in three months, but rebounded to 3.83% last Friday. This signals a weakening in investors' risk aversion and is interpreted as a sign of renewed upside potential in the altcoin market capitalization."
It added, "If China implements strong economic stimulus measures, global liquidity is likely to increase, leading capital to rotate into risk assets in general. If the People's Bank of China (PBOC) actually injects liquidity, there could be a direct inflow of funds into the virtual asset market, potentially driving prices to new all-time highs."
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
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