Even though China is highly involved in the real estate market, Bitcoin (BTC) may gain a lot from the current developments there. The United States has more capital market liquidity than China does, but China still has an abundance of power to affect the market rebound.
Dan Tapiero, founder and CEO of 10T Holdings, has talked about how China is gathering an enormous quantity of Bitcoin. After a significant decline in the Chinese real estate market in 2020, the government is contemplating using quantitative easing (QE) to get people to borrow funds.
This QE plan is meant to give Chinese real estate developers who are short on cash much-needed running funds. The goal of this move is to get businesses going again, but it could also cause fiat currencies to lose value, which would make Bitcoin and other inflation hedges like gold more valuable.
Bitcoin Faces Volatility Ahead
After more than a decade of a bear market, Tapiero said that the recent “explosive up move in Chinese Real Estate stocks” is a big sign of recovery.
People think that China’s move to quantitative easing (QE) is a good thing that will help make the world’s funds more liquid, which will be good for BTC. Tapiero also thinks that other risky investments, like Ethereum and the tech-heavy NASDAQ Composite, will do well overall.
With a slight increase of 0.17% to $66,152.64, Bitcoin is currently having a lot of volatility. Even though people are optimistic, there are still major problems to solve, like getting miner income to settle after the halving, which affects the supply and balance of the market.
People know that Bitcoin is strong, and as the market gets used to what Chinese QE means, BTC’s real price discovery may begin. Tapiero is still optimistic about the market as a whole. He thinks that Bitcoin could reach $90,000 to $200,000 in the long run.
