The Chinese authorities 2 trillion yuan ($278 billion) plan under consideration Although the plan is meant to reboot the sluggish stock market, the impact of the plan, which has pushed Hong Kong and mainland markets into the black, does not seem to have spilled over to the price of Bitcoin (BTC).
Bloomberg reported that the Chinese government plans to use state-owned enterprises’ offshore accounts and local funds to invest in onshore stocks through Hong Kong exchange links and other unannounced measures.
Local stock market indexes reacted positively to the news, with Hong Kong’s Hang Seng index up 2% and the mainland Chinese stock index CSI300 up 0.15%. The Hang Seng Index has fallen 31% over the past year, and the CSI has fallen 23%.
This reported method of injecting offshore funds into the mainland stock market is aimed at increasing liquidity and credibility. Bloomberg also reported that further unspecified support measures, ranging from regulatory changes to financial interventions, are awaiting approval from the top leadership.
On the Bitcoin side, we see market trends being more influenced by inflows into exchange-traded fund (ETF) products and record outflows from the Grayscale Bitcoin Trust (GBTC). CoinDesk previously reported.
Additionally, some analysts believe that if the People’s Bank of China takes steps to support the yuan amid falling stock prices and a strong dollar, it could have a negative impact on Bitcoin’s price due to its inverse correlation with the US dollar. I think there is.
“China is encouraged to keep a lid on BTC to maintain a relative veil of currency stability and prevent capital flight. This coincided with the poor performance of FRNT Financial,” said David Brickell, head of international distribution at Toronto-based cryptocurrency platform FRNT Financial. As previously told CoinDesk In an interview.
However, some market participants are taking a more optimistic view.
“The recovery of the Chinese economy will have a significant impact on the global economy, and any stimulus or easing measures will be a reassuring sign for investors. It will innovate aggressively and actively seek market expansion,” Greta Yuan, head of research at Hong Kong-based regulated exchange VDX, said in a note.