News from China, as a rule, have a negative impact on the market of cryptocurrencies. The Chinese government has clearly stated its opinion that Bitcoin, Ether, and others are unacceptable. In September 2017, the authorities of the Celestial Empire actually banned the release of tokens, recognizing investments in ICOs as pyramid schemes.
Nevertheless, there is a demand for cryptocurrency inside the country, and it is pretty significant. Therefore, it is the Chinese crypto investors who could initiate the next "bullish" market.
Experts expect the growth of Bitcoin and other cryptocurrencies in the fourth quarter of 2018. The downturn and negative sentiments of the first half of the year will be overcome. This was reported by Tencent Holdings to the managing partner of the Hong Kong investment company Genesis Capital Sun Zeyu.
Leading experts of the crypto industry of the Asian region expect that Chinese investors will play a key role in the new uptrend. In particular, Gao Kangdi of Metropolis VC made a forecast in the Chinese media: "Perhaps this is the beginning of a cryptocurrency ‘bull’ movement that goes far beyond our imagination." Given the tough position of the Chinese government, a positive outlook for Bitcoin and other cryptocurrencies is surprising.
The massive infusion of capital from the PRC into the cryptocurrency market, however, is quite possible. The decisive factor is the Asian crypto analysts consider the financial instability of the region. The development of a trade confrontation between the PRC and the U.S. provokes an influx of investment into crypto coins. Bitcoin and other digital currencies, given their decentralization, are becoming a natural alternative to state-regulated assets.
The co-founder and CEO of Noble Gold Investments, Charles Thorngren, commented on this in an interview with Forbes and stressed that the crypto market attracts a qualitatively new investor: "The basis of Bitcoin has changed. In fact, it has even developed, as it currently covers a wider range of investors. Those who previously invested in stocks, today, given the growing riots in the stock market, are looking for new opportunities. And these new investors help build a stronger Bitcoin market and give the crypto movement more legitimacy in general."
Moreover, there already exist crypto-friendly enclaves in Asia, for example, Singapore. The city-state is well-known for its loyal attitude to ICOs and the crypto market. In addition, Singapore regulators removed barriers for the opening of exchanges geared toward crypto assets. Singapore is now the abode for thousands of investment funds that are invested in tokens, with roots from the People's Republic of China.
Currently, digital assets are far from their last year's highs. This is indicated by the value of individual cryptocurrencies and their total market capitalization. The market, however, is cyclical. And this cycle lives as long as the asset exists. If you trust the Asian crypto experts, then the next bull cycle will begin in the near future. And it is Chinese money that will lead the market to new heights.