Banking panic means a pump in Bitcoin
According to a News article I read this morning, the problems in China’s debt-laden property sector and the potential collapse of two giant developers with combined debt of over half a trillion dollars, have begun to spill over into the country’s financial system. Banking officials have called for calm after concern over massive unpaid debts accumulated by China Evergrande sparked a run on a regional bank in northern China this week.
Some people online say that there is no evidence that suggests that the recent Bitcoin price pump that made it hit $28k is directly correlated to the Cangzhou bank run in China. For those that may not know, a bank run has begun in China at the Bank of Cangzhou on fears that the collapse of Evergrande made them insolvent. Now, we all know how news (whether it is positive or negative news) works in the crypto space even if it might just be for a short-term or longer period. If there is any positive news about crypto or any negative news about the banking sector the crypto market tends to pump hard at that moment, The same goes for when there is a piece of negative news about the crypto space like hacks, rug pools, and any other thing that gives crypto a bad name. When these things happen the crypto market dumps, you can use what happened after FTX and Terra Lab's LUNA crashed, for example, the crypto market dumped or crashed after these events.
Also, the fact that the news talked about local policy arrested some people still does look good for the bank, when if they say it those who brought about the rumors that the bank was suffering a cash crunch because of its exposure to Evergrande. The Bank of Cangzhou is a small regional bank, but it is one of the many banks in China that has been exposed to Evergrande's debt. So either rumors or not we have another bank run and Bitcoin is going up yet again. Just like it did in the last wave of bank runs in the US back in March. So whether people like it or not Bitcoin/Crypto are a great hedge against fiat inflation/instability.
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