The start of 2025 is marked by China's economic troubles, potentially leading to a new Bitcoin surge.
Impact of Yuan Depreciation and Bond Market
The yuan continues to fall, reaching its lowest level since September 2023 — 3.22 yuan per US dollar. This is linked to falling yields on Chinese government bonds, while US yields rise, adding pressure on the Chinese market.
Decline in China's Stock Market
China's stock market is also under strain. This week, the CSI 300 index dropped to its lowest since September, while the ChiNEXT index lost 8% since early December. Experts warn against rapid yuan devaluation to avoid financial instability.
Crypto Markets Brace for a Rally
China's economic issues may lead to a new cryptocurrency surge. In 2015, yuan devaluation boosted Bitcoin. Experts now foresee a price rise amid Chinese economic instability.
China's troubles increase interest in alternative investments such as Bitcoin, potentially sparking a crypto market boom.
