Chinese capital outflows are growing- will they push Bitcoin back up?

17 Jan, 2019
by Arthur Sillers
News
Chinese capital outflows are growing- will they push Bitcoin back up?

According to CCN, China’s economic situation might be well poised to produce another crypto bull run.

China has some of the most stringent capital restriction policies, which specify that noone can move more than 50,000 out of the country. Companies furthermore are not allowed to exchange Yuan for other currency without government approval. This puts serious limits on moving capital out of China, and the pressure is building as China’s economy continues to grow into one of the world’s most impressive.

Cryptocurrency offers a feasible alternative to legal routes to getting money to international destinations. Furthermore, capital outflows are increasing, meaning that Chinese nationals are increasing their interest in getting money out of the country. The last time capital outflows increased to this level in fact, was immediately preceding the surge of Bitcoin to a $20,000 value.

While crypto is undergoing a number of other influences, with any luck, a similar pressure will be exerted on the crypto market and bring coins up to former highs.

Read more: Bitcoin hash rate is recovering, even if the price isn't

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Read more about: Bitcoin (BTC) China

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