Categories: News

Chinese stock market takes another hit. Will bitcoin be affected?

The Chinese stock market has taken a couple of hits recently. In fact, they just faced their worst start to a year to date, as the markets have plunged over 7% in their opening session.

Things started out with a halt of the CSI-300 Futures, also known as the Chinese Securities Index, totalling 15 minutes, and failing by 5 percent. However, the move, which initially seemed overly-dramatic, failed to stop the plunge. Once the market reopened, the shares continued losing in value, thus tumbling to 7%.

In order to counter-attack this, China’s new circuit breaker measures were imposed. For those that do not know, following China’s stock market plunge last year, a new mechanism was introduced by the securities regulator, needed to automatically prevent losses whenever the stock market suffered from volatility issues.

There’s been a lot of speculation concerning the reasons for the plunge, and some of the most believable include the diminishing industrial activity in China, alongside with the falling of the yuan, China’s national currency. Together with this, another factor which may have influenced the plunge is the dumping of stocks- an action taken by investors who anticipated the ban issued on share sales this summer.

Related Post

To help improve China’s shuttering economy, the People’s Bank of China has imposed a few more measures, by cutting its benchmark deposit and lending rates, while also lowering the mandatory cash reserves required by banks to be able to operate. The country’s diminishing economy has high chances of contributing to further bitcoin implementation. Considering the fact that over 80% of the world’s bitcoin transactions are carried out in the region, a possible increase in the price and bitcoin trading activity in China will commence in the foreseeable future.

As digital currencies have been the direct witness to a great year in 2015, surviving all the hits, an increase in adoption is likely if China’s stock market continues on this path towards failure.

Do you think that the plunge in Chinese stock trading will play an influence on bitcoin? Let us know your thoughts in the comment section below.

Daniel Dob

Daniel is a bitcoin investor and journalist for numerous news outlets in the financial sector. When he's not writing, trading, or interviewing people, you can find him swimming, reading or taking one of his hobbies to the next level.

Share
Published by
Daniel Dob

Recent Posts

WAX Price Up 44%, Increased User Adoption Signals Growing Interest in the Platform

WAX price is up over 44% today, making it the biggest gainer on Crypto.com. With…

1 hour ago

5 Underrated Metaverse Coins With Great Long Term Potential

Metaverse coins are all the hype these days, with coins like Decentraland and Axie Infinity…

5 hours ago

Ankr Price Up 11% Amid Binance Listing and Polkadot Parachain Integration

Ankr price is up over 11% today, making it one of the biggest gainers on…

9 hours ago

Keep Network Price Up 45% Amid Upcoming Threshold Merger

Keep Network price is up over 45% today, making it the biggest gainer on Crypto.com.…

23 hours ago

Nugenesis Patented Gasless NFT Platform Will Bring Mainstream Adoption

NuGenesis has 4 patents pending for its gasless NFT multi-cross chain system. It sees NFTs…

1 day ago

Top 5 Metaverse Coins With Fully Functional Apps to Watch In 2022

The hottest trends in crypto right now are meme coins and metaverse projects. With Facebook's…

1 day ago

This website uses cookies.