During the last few weeks, we observe that the bitcoin soars in value. Ultimately, it looks like a direct effect of the continuing decline of the Chinese Yuan. The bitcoin surged by over $20 overnight as more people sold, bought, and traded bitcoins in anticipation of China’s crackdown on wealth-management products. It’s still unclear if this increase in value is fully connected to the Chinese government’s revamp of its financial institutions. One thing is very clear though and that is the fact that the situation has triggered a burst in bitcoin activity. More and more people are getting involved in the forex trading business because of global financial events like the one currently happening near the casinos in Macau China.
So, What’s The Price Of Bitcoin?
China is increasing its regulation on wealth-management products and other related accounts that are worth more than $1.9 trillion. This is a huge amount of money, a large percentage of which have highly suspect and shady origins. The people and businesses behind these funds don’t want the Chinese government scrutinizing their money so they are looking for other ways to transact. This is where the bitcoin industry comes into the picture. Many of these funds are being converted into digital currencies. As a result, the number of bitcoins circulating in the market today is experiencing massive growth.
Cryptos Experience Massive Growth
Indeed, a lot of financial experts have questions. Well. why are trillions of dollars of assets are locked up in Chineses wealth-management products? The big question is, why were these products exempt from regulatory supervision in the first place? Furthermore, the problem wouldn’t have grown this bad if the Chinese government regulated the items from the very beginning. According to a report by the business website Bloomberg, China will be monitoring banks and their wealth-management products as part of its reinvigorated campaign to exercise more control over the country’s financial systems.
The Chinese Crackdown
So, is this Chinese crackdown on wealth-management products? If it is and it continues, many experts believe that it will be yet another catalyst that will increase Bitcoin’s value. However, the international bitcoin market experiences growth. Now, almost every US bitcoin casino sees increasing activities. This means just one thing and that is there are more people out there getting into the bitcoin trading business.
A lot more people are starting to pay attention to. With millions of dollars from China being converted into digital currencies, it’s truly a good day for the bitcoin industry. With that said, it’s not surprising at all if the bitcoin experiences surge in value in the coming weeks and months.