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

WIF Set to Overtake BONK? Lunex Soars with 100x Potential in Altcoin Season

As altcoin season heats up, all eyes are on the rising stars—especially Lunex, which is…

2 hours ago

Binance Coin Price Dips: BNB Holders Rush To Lunex Presale To Hedge Their Long Positions

While the broader market witnessed a notable upward movement, Binance Coin (BNB) experienced a decline…

3 hours ago

Crypto Stalwarts Forecasted 800% Growth in Innovative Projects: VeChain, Rollblock and Polkadot!

This blazing crypto bull run has investors looking for the next top altcoins set to…

3 hours ago

Dogecoin Price Set To Recreate 36,000% Rally From 2021 After Pennant Formation

The Dogecoin price is back in the limelight, captivating the crypto world with its recent…

3 hours ago

Is XRP About to Explode? How Trump’s Victory Is Affecting XRP Price Amidst JetBolt Growth

Ripple’s XRP showed a 68% price increase in the last 7 days following Trump's victory,…

3 hours ago

Ethereum Down While Bitcoin, Solana, and JetBolt Skyrocket In End November 2024

Ethereum stumbles as Bitcoin surges past $97K, Solana eyes new highs, and JetBolt’s presale shakes…

6 hours ago