Focus on the complex relationship between Bitcoin (BTC) and China. The most populous country in the world has been hit hard by recent changes in international financial conditions. The euro fell, the dollar strengthened. Meanwhile, Chinese banks are facing insolvency risks due to a widespread mortgage boycott. So many things that could change the relationship between digital gold and the global factory.
Economic situation in China
Currently, 28 of the top 100 developers are in default or have restructured their debt. The mortgage boycott is on the rise and buyers of vacant homes, who have been blocked by the pandemic, the financial conditions of developers and the national anti-Covid policy, are refusing to pay their mortgages. The boycott started with 20 projects and has since expanded to 235 projects. Chinese banks have $ 9 trillion in real estate investments. If a problem arises with the continued decline in property prices, it could very quickly lead to a problem with the solvency of the banks.
US dollar and bitcoin (BTC)
While a major financial crisis could erupt in China, the dollar has strengthened. Many expect an impact on Bitcoin (BTC). In fact, some believe that the rise in the price of BTC coincides with a weak dollar. For others, a rise in the dollar does not mean a possible decline in BTC. It is important to note that both bitcoin and the dollar have seen gains over the past 10 years, only on slightly different timescales.
The situation in the world does not bode well. BUT financial crisis in China it could trigger a global crisis similar to the subprime mortgage crisis. The collapse that it will inevitably lead to bitcoin. Meanwhile, BTC has made a little over $ 23,000. For now, the king of cryptocurrencies remains afloat.
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