Chinese Monetary Policy: A Key Influencing Factor
Crypto expert Dan Tapiero, founder of 10T Holding, sees China’s current monetary policy as a crucial driver for a bull market, particularly in cryptocurrencies like Bitcoin. He emphasizes that the recent interest rate cuts in China—despite the country’s official ban on cryptocurrencies—should be viewed as bullish for Bitcoin and gold. These measures could indicate a stronger economic slowdown in China than generally assumed.
Impact Beyond US Borders
Tapiero points out that the price increases are not primarily driven by the US Federal Reserve (Fed), as it has not made any changes to interest rates recently. Instead, it is mainly global liquidity and the geopolitical environment with tensions and the search for safe assets away from inflation-prone fiat currencies that are driving the market.
Alternative Investments: Gold and Bitcoin
In this context, Tapiero views gold as a hedge against inflation and geopolitical risks, and Bitcoin as a safeguard against a financial system based on debt and infinite money printing.
Tapiero’s Forecasts
- Chinese interest rate cuts have a strongly stimulating effect on global markets.
- This leads to a bull market in cryptocurrencies and precious metals.
- Investors should pay attention to this development, as it could have significant implications for portfolio allocations.
This assessment underscores the growing influence of Chinese monetary policy on global capital markets and simultaneously indicates a shift away from focusing solely on US monetary policy.