China bans Bitcoin (BTC) — once more, once more, and once more. Actually, this actual piece of stories has been floating round ceaselessly. Evidently, there have been a couple of direct repercussions pre and put up the information.
As an example, the bigger cryptocurrency market took successful. Now, how is that this ban completely different from earlier bans? Or did it actually have an effect on the institutional buyers this time round?
Properly, the straightforward reply is ‘NO’ since buyers have as an alternative been shopping for the dip on the again of China’s newest FUD. Merely put, buyers see China’s ban as a shopping for alternative:
This marked a rise of 126% in weekly inflows.
What do the aforementioned stats imply? Based on CoinShares’ James Butterfill,
“The continued inflows counsel the latest headwinds for digital belongings, such because the widened China ban, have been seen as shopping for alternatives for buyers.”
Particular person cryptos recorded optimistic stats as properly.
Bitcoin led with inflows of $50M, with the figures among the many largest of the market’s cryptocurrency investments. This actually helped the crypto get better by 234% week-over-week inflows, when in comparison with the earlier two quarters.
The timing right here is attention-grabbing, particularly since as lined beforehand, BTC has seen outflows over 13 of the final 17 weeks.
Ethereum, the market’s greatest altcoin, noticed inflows totaling $29M final week.
“Sentiment has remained comparatively buoyant for Ethereum as the quantity staked to Eth2.0 progresses. By our estimates, 6.6% of Ethereum is staked to Eth2.0, with development in staking important for investor sentiment, as buyers see it as a possible environmentally various to different proof-of-stake digital belongings.”
Moreover, different altcoins like Solana, Cardano, and Polkadot additionally noticed small inflows of $3.9M, $2.6M, and $2.4M, respectively. Solana and Polkadot proceed to see “outsized inflows” representing 4.5% and three.2% of belongings below administration (AUM), Butterfill wrote.
Zooming out a bit, information concerning the harshest China cryptocurrency crackdown initially crashed the market. Nevertheless, Bitcoin managed to get better over the weekend. Simply because it did earlier than.
Fundstrat’s Will McEvoy too shared an identical narrative. Considered one of his tweets learn,
— Will McEvoy (@will__mcevoy) September 24, 2021