A recent report highlighted that some Chinese investors are giving up on cryptocurrencies, and turning back to the country's growing stock market, spurred by central bank measures to boost the economy.
Despite China’s 2021 ban on cryptocurrency trading, many mainlanders continue to access foreign accounts to trade digital currencies, bypassing capital controls and moving assets overseas.
The report argues that USDT, the world’s most used stablecoin, has recently traded at a discount to the US dollar, coinciding with China’s new economic policies.
This discount suggests increased selling pressure on the USDT as investors sell the stablecoin to buy Chinese equities. Livio Weng, CEO of Hong Kong-based crypto exchange Hashkey, suggested that this reflects investor panic.
Due to the ban on USDT/Yuan direct trading, the dollar serves as a measure of activity, with the USDT’s discount indicating greater demand for dollars.
Bloomberg also reported, that traders of Chinese yuan on Binance’s peer-to-peer market are pricing USDT lower than the official yuan/dollar rate, further confirming this change. Institutional investors are also shifting assets to Chinese equities, contributing to the stock market’s rapid growth.
On Monday, a court gave the green light to FTX’s bankruptcy plan, enabling the collapsed crypto exchange to repay its users with $16 billion in recovered assets.
The G7 antitrust regulators have announced plans for strong enforcement measures to ensure competitive practices in the artificial intelligence sector, aiming to tackle potential risks before they become entrenched.
Goldman Sachs has updated its year-end and 12-month forecasts for the S&P 500 index, driven by anticipated margin growth for businesses and a positive macroeconomic outlook extending into 2025.
The cryptocurrency landscape, particularly Bitcoin, tends to respond to significant economic indicators from the U.S. as traders adapt their strategies to align with macroeconomic trends.