Chinese Cryptocurrency Investors Predict Another Bull Market
The situation in the financial markets has looked a bit bleak lately, but Chinese cryptocurrency investors seem to be a lot more optimistic than one would expect under current circumstances.
Investors believe the financial world might be getting another bull market because of a growing capital in the form of thousands of new digital token investment funds that are preparing to enter the stage.
Numerous funds, whose capital altogether amounts to hundreds of billions of renminbi (RMB, the official currency of the People’s Republic of China), are being established at this exact moment, despite the progressively volatile market environment.
Chinese cryptocurrency experts believe the combination of financial uncertainty and establishment of many funds might be setting the stage for the rise of another bull market.
Optimistic Views Despite Current Bear Market
A founding partner of Genesis Capital, Sun Zeyu, optimistically believes that the prices of cryptocurrencies will get relatively higher in October, and that “even if there may be a bear market during the second half of this year, I think it will soon be over. We may be approaching the end of the bear market,” he told Chinese media outlet Tencent Technology.
During the past month, top cryptocurrencies experienced a massive dive in their prices, including bitcoin which has plunged 22.68 percent to about $6,513 and ether which has dropped 33.57 percent to $470. The overall market capitalization of cryptocurrencies reached the lowest in the past five months and amounted to $278.8 billion.
But this does not discourage Chinese crypto practitioners, such as Gao Kangdi, a partner at Metropolic VC, who told the Chinese media that the upcoming crypto bull market might surprise everyone:
“The scale of the fifth wave of the crypto bull market may be far beyond our imagination.”
Why Such Optimism?
Chinese crypto experts support their belief with the fact that capital is preparing for a massive migration into cryptosphere.
“In recent months, there have been over a thousand foundations being established in Singapore by Chinese nationals,” Chen Xianhui, an agent specialized in helping Chinese clients to register foundations in Singapore, claims. Many of these foundations are used for creating various token investments funds.
Chinese citizens are flocking to Singapore in large numbers to register their foundations because this country’s regulations are facilitating a speedy and easy registration process. You only need a scanned copy of your ID and passport. The price is only $1,561 or 10,000 RMB, cheaper than in the Caymans, and the entire process is completed in just 15 working days.
The token funds’ capital all over the world might be amounting anywhere from tens of millions to billions of RMB.
The main reason for the establishment of so many token funds is that people dealing in financial markets are increasingly seeing an opportunity for quick returns of investment in the blockchain universe.
Heck, even the President of China, Xi Jinping, believes that blockchain technology has “breakthrough applications.”
Money from traditional fields is pouring in, as well. In the opinion of some investors, there may be billions, if not trillions, of USD just laying around, waiting to be invested in cryptocurrencies.
Another motor potentially propelling a crypto bull market might be the instability of the traditional financial market, as the global debt level is severely high.
Ultimately, in words of Kangdi, people will have to pull through the current bear market to enjoy another bull market that will increase digital token prices to unprecedented levels.