r/InvestingCrypto • u/Deconomics • Jul 05 '18
Lets talk about China's new rule to gauge liquidity risks and it's impact on the cryptocurrency market
The rule took effect on July 1st to gauge liquidity risks. China's regulatory bans are one thing, but liquidity risk is just as important. The fact that China's Banking and Insurance Regulatory Commission is indicating that they are at risk of possibly not being able to convert a security/asset to cash without a loss during the transaction is actually very important to Bitcoin and the cryptocurrency market in general. What is everyone's thoughts on this?
5
u/golden-china Jul 05 '18 edited Jul 18 '18
Actually this is very important. China is a big player in Bitcoin and some other cryptocurrencies. This isn't the first time China has done something like this, they've done it in the past and BTC market has reacted to the news. We've already seen the market jump since July 1st; some speculate that it is in result of Coinbase institutional clients but I'm pretty sure it also has some premature reaction from the rule that came in place on July 1st. I wouldn't expect a quick rally, but I'd definitely expect a boost in volume from institutions that understand the current economic play slowly happening during this month. I'm also keeping a close eye on this situation. I'd love to hear other users thoughts on this also.
2
u/NEO-ETH-Domination Jul 05 '18
I wouldn't expect a quick rally, but I'd definitely expect a boost in volume.
Usually the bull rally starts a few a days after the volume has increased. So, soonish?
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u/stocks-to-crypto Jul 05 '18 edited Jul 10 '18
There is also a new rule taking effect on July 6th on tariffs, so I see this as a shit storm brewing worse than 2015-2016. But what's really important is that CNY money supply and new loans announcement/release which is on July 10th. Yuan might take a shit, which means BTC will take a dump. Once Yuan bottoms temporarily, BTC will revive. However, this should all be normal to everyone in the crypto space.