More evidence that Chinese nationals are still actively trading cryptocurrencies 19 months after the country's ban on the sector has surfaced.
In 2021, China unleashed the strictest crackdown yet on all forms of digital assets, which sent shockwaves across the digital assets industry.
Fast forward to 2023; however, there are hints that the government was beginning to reconsider its approach.
For context, consider that many indications and rumours have been that China is "reopening" in recent months.
Short-term charts point to weakness and fading momentum, even as long-term forecasts split sharply between institutional-driven upside and warnings of a deep mean reversion.
With liquidity fading and demand still weak, Bitcoin’s repeated failure at $90,000 has traders bracing for continued range-bound action into the new year.
Regulator proposes 100% risk charge on crypto assets, lower charges for regulated stablecoins
Bank rolls out SGD and USD blockchain balances for 24/7 treasury management
The trade that once let equity investors proxy Bitcoin exposure is breaking down. With treasury firms underperforming their underlying assets, the model is shifting from accumulation to debt management—and many DATCOs may not make it through the next phase.
Institutional inflows are transforming crypto from a retail-led market into a derivatives-driven asset class, with options now central to risk, liquidity, and price formation.
Crypto markets are set to be shaped less by single data prints and more by deeper forces – central bank credibility, AI-driven risk cycles, tariff-led inflation pressures, and dollar liquidity – creating a year defined by volatility, not clean trends.
Short-term charts point to weakness and fading momentum, even as long-term forecasts split sharply between institutional-driven upside and warnings of a deep mean reversion.
