Post by Blitz on Apr 24, 2024 12:38:25 GMT -5
Yay, Xi's return Maoism.
And now this...
China's Capital Flight Could Fuel Bitcoin’s Next Rally
By ZeroHedge - Apr 24, 2024, 12:00 PM CDT
oilprice.com/Finance/the-Markets/Chinas-Capital-Flight-Could-Fuel-Bitcoins-Next-Rally.html
- Chinese FX outflows, particularly through various channels, are increasing rapidly, indicating significant capital flight.
- Bitcoin's price surge is closely correlated with periods of Chinese capital outflows and currency devaluation.
- The potential for further Bitcoin gains in the next six months is attributed to China's substantial influence on global capital flows.
Last October, when we pointed out that China's FX outflows had just hit a whopping $75BN - the single biggest monthly outflow since the 2015 currency devaluation - we concluded that the "unfavorable interest rate spread between China and the US will "likely imply persistent depreciation and outflow pressures in coming months", or in other words, September's biggest FX outflow in years is just the beginning, and very soon - in addition to geopolitics and central banks - the world will also be freaking out about the capital flight out of China... not to mention where all those billions in Chinese savings are going and which digital currency the Chinese are using to launder said outflows."
We wrote that on October 20 when Bitcoin was trading just under $30,000, a level it had been for much of 2023. And, just as we correctly predicted at the time...
... following this surge in Chinese FX outflows, bitcoin - traditionally China's preferred means to circumvent Beijing's great capital firewall since gold is, how should one put it, a bit more obvious when crossing borders - promptly exploded more than 100% higher in the next 4 months.
And while conventional wisdom is that this surge in the price of the digital currency was largely due to the January launch of Bitcoin ETFs, what many missed was a Reuters story in January which confirmed our thesis from back in 2015, according to which much more than ETFs, and much more than rapidly shifting sentiment or frankly any day-to-day newsflow, it is China's massive wall of inert capital that has been the biggest driver of bitcoin moves, and never more so than during periods of FX and capital outflows which usually precede some form of capital controls.
And now this...
China's Capital Flight Could Fuel Bitcoin’s Next Rally
By ZeroHedge - Apr 24, 2024, 12:00 PM CDT
oilprice.com/Finance/the-Markets/Chinas-Capital-Flight-Could-Fuel-Bitcoins-Next-Rally.html
- Chinese FX outflows, particularly through various channels, are increasing rapidly, indicating significant capital flight.
- Bitcoin's price surge is closely correlated with periods of Chinese capital outflows and currency devaluation.
- The potential for further Bitcoin gains in the next six months is attributed to China's substantial influence on global capital flows.
Last October, when we pointed out that China's FX outflows had just hit a whopping $75BN - the single biggest monthly outflow since the 2015 currency devaluation - we concluded that the "unfavorable interest rate spread between China and the US will "likely imply persistent depreciation and outflow pressures in coming months", or in other words, September's biggest FX outflow in years is just the beginning, and very soon - in addition to geopolitics and central banks - the world will also be freaking out about the capital flight out of China... not to mention where all those billions in Chinese savings are going and which digital currency the Chinese are using to launder said outflows."
We wrote that on October 20 when Bitcoin was trading just under $30,000, a level it had been for much of 2023. And, just as we correctly predicted at the time...
... following this surge in Chinese FX outflows, bitcoin - traditionally China's preferred means to circumvent Beijing's great capital firewall since gold is, how should one put it, a bit more obvious when crossing borders - promptly exploded more than 100% higher in the next 4 months.
And while conventional wisdom is that this surge in the price of the digital currency was largely due to the January launch of Bitcoin ETFs, what many missed was a Reuters story in January which confirmed our thesis from back in 2015, according to which much more than ETFs, and much more than rapidly shifting sentiment or frankly any day-to-day newsflow, it is China's massive wall of inert capital that has been the biggest driver of bitcoin moves, and never more so than during periods of FX and capital outflows which usually precede some form of capital controls.