Bitcoin
Bitcoin
Subscribe now Crypto and Blockchain Advisor to Forbes And in the aftermath of Bitcoin's halving, “discover the blockchain blockbuster that's poised to deliver gains of over 1,000%.”
Bitcoin prices have nearly doubled over the past 12 months, rising as Russia prepares for a shift towards Bitcoin and cryptocurrencies.
Now, with former US President Donald Trump teasing a mysterious crypto project that could rival Bitcoin, economists are calling on China to launch a “shock and awe” stimulus package worth $1.4 trillion that could jumpstart the economy and spark a “glowing” Bitcoin price surge.
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Chinese President Xi Jinping has overseen a crackdown on Bitcoin and cryptocurrencies and is now … [+]
“There's a confidence deficit here, household savings rates are very high, for example, and people don't want to spend,” said Fred Neumann, Asia economics chief at HSBC. Financial TimesHe called the roughly $1 trillion stimulus package “benchmark.”
“Shock and awe is sometimes the right approach,” Newman said. “We've been so incremental over the last 18 months that we risk not restoring the trust we need with each announcement.”
The latest economic data from China showed the consumer price index (CPI) rose just 0.6% year-on-year in August, below the 0.8% increase the Chinese government had expected. The Wall Street Journal Polls of economists show growing concern about a deflationary spiral.
China's GDP grew 4.7% year-on-year through the second quarter of 2024, but nominal GDP, which doesn't take inflation into account, rose just 4%, suggesting broad-based price pressures are weighing on the economy.
“The longer deflation continues, the greater the call for reflation,” said Robin Xin, chief China economist at Morgan Stanley. FTHe added that a “bullative scenario” for China would see stimulus measures worth $1.4 trillion over two years.
Last month, Arthur Hayes, co-founder of bitcoin and crypto derivatives pioneer BitMEX and later founder of the Maelstrom investment fund, predicted in a blog post that China will “finally unleash its long-awaited bazooka-style fiscal stimulus” next year, predicting that “crypto bull markets are going to be fantastic” in China and the US.
Meanwhile, China-focused bitcoin and cryptocurrency entrepreneurs and investors say they hope China will reverse its bitcoin ban.
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Bitcoin prices surged earlier this year before falling over the summer. … [+]
In June, crypto investor Brock Pierce predicted that it was only a matter of time before China reopened its digital doors to cryptocurrencies, while Tron Blockchain founder Justin Sun called recent legal rulings in China “highly significant.”
Will China Open Up? [to crypto]“… I think it’s inevitable,” said Pierce, a former child actor who co-founded USDT-pegged stablecoin issuer Tether in Hong Kong a decade ago. South China Morning Post“The question is not if, but when.”
In May, attendees at the Hong Kong Bitcoin Conference sparked speculation that a much-talked-about Hong Kong spot bitcoin exchange-traded fund (ETF) could eventually be opened up to mainland Chinese investors.
China banned Bitcoin in 2021, making the trading and mining of cryptocurrencies, including Ethereum and XRP, illegal, which caused Bitcoin prices to plummet at the time.
