Rising inflation and Chinese Bitcoin ETFs

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Last Updated on 11 April 2024 by CryptoTips.eu

US inflation does not appear ready to fall yet, which likely means that a Federal Reserve rate cut will become slightly less likely this year. It is still unclear what effect this will have on risky investments such as tech shares and crypto, but it is (normally) not great news.

In China, people have looked on with envy at the success of the Bitcoin ETFs in the United States. According to well-informed sources, several Bitcoin ETFs will be allowed to start trading in Hong Kong before the end of this month. Will this bring millions of new investors to the world of crypto?

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The CPI (consumer price index) prices in the US

The CPI (consumer price index) prices in the United States showed yesterday that inflation is not yet ready to die down. The Federal Reserve’s inflation target of 2% is nowhere near to being reached, with annual inflation now rising to 3.5% again, which does not bode well for any future rate cuts. We’ll have to wait for word from Jay Powell, chairman of the Fed, to see what’s next.

The Bitcoin price is in waiting modus apparently and trades for $70,800 at the time of writing.

HongKong

Chinese investors have had a few difficult years since Covid started back in 2020. Real estate companies such as Evergrande went bankrupt, the local national currency, the Yuan, seems to be losing value and the Chinese stock markets has also lost some of its shine.

Given the success of the Bitcoin ETFs in the United States this year, it is therefore not surprising that Chinese investment funds will soon start their own Chinese Bitcoin ETF through their local department in Hong Kong (where crypto is still allowed). They are of course hoping to lure new Chinese investors.

According to sources at Reuters, these will start trading before the end of April already. Crypto fans are reacting very enthusiastically to the news.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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