Bitcoin’s spot in the Chinese market has always been guaranteed, although the country’s government has always been quite antagonistic towards the digital currency. The trading of BTC and the majority of other digital currencies is still illegal in China. Regardless of this backlash, China’s cryptocurrency community is still very spirited as Google trends indicate that Bitcoin demand is about to hike very soon.
According to data from Google Trends, the interest in BTC and other bitcoin-related queries is likely to hit a perfect 100 score before the week is over. Although it is not possible to explain the sudden bitcoin demand hike, the upcoming bitcoin blocks halving, which is less than a month, is a strong factor to consider. Bitcoin demand hikes most of the time when the halving event draws closer, as many investors expect to reap handsome profits from their holdings.
The sudden bitcoin demand hike is quite surprising, considering the current situation globally with coronavirus pandemic. As the world struggles to fight the epidemic and navigate its hard-hitting effects, investors are exploring alternative methods to both invest and save their wealth.
At the start of the month, China’s government 10-year yield collapsed to historical levels not witnessed for nearly two decades, since back in 2002. Moreover, people are also exploring stock funds, as opposed to the more popular market funds. Although stock funds pose a higher risk, the profits are quite attractive, especially at a period when most of the other markets are massively exhausted.
Generally speaking, the current situation seems to be for the risky bitcoin market, which would result in some bulky returns too. As the financial market continues to dip, investors in China seem to be disregarding the risks posed by bitcoin and the stocks market, hoping to rake in better rewards.
China’s GDP predicted to fall by 3% in Q1
The current situation in the Asian country with bitcoin reflects the precariousness last seen during the heated trade wars between the United States and China in 2019. The interest in BTC surged as a result of the changing tariffs between the two countries, making the situation disastrous for investors in China, who eventually began exploring bitcoin due to the plunging yuan.
Furthermore, the economy of China is predicted to drop by 6.8% during this quarter, with a 3% dip in GDP. Considering the unpredictability with the traditional markets and investments, on top of the fast-approaching halving event, the future might turn out bright for bitcoin and its holders.