China’s Influence on the Bull Market
Dan Tapiero, founder of 10T Holding, emphasizes the significant role of Chinese monetary policy as a primary driver of the current bull market in Bitcoin and gold. Contrary to popular belief, it is not the USA or the US Federal Reserve (Fed) that is responsible for the price increases. Rather, the interest rate reductions in China – despite a possible economic slowdown – have a positive effect on the markets.
The Role of Interest Rate Reductions
Currently, China has low interest rates that promote increased global liquidity even under the official ban on cryptocurrencies. This expansive monetary policy creates ideal conditions for investments such as gold, which serves as a hedge against inflation, as well as Bitcoin, which is perceived as a safeguard against a debt-based financial system.
Implications for German-Speaking Investors
For investors in the German-speaking region, this development means that China is a central influencing factor for the current rally in cryptocurrencies. Chinese monetary policy may continue to provide strong impulses, regardless of the interest rate policies of Western central banks.
In times of geopolitical tensions and rising inflation, Bitcoin and gold offer attractive protection options. In summary, Tapiero sees Chinese interest rate policy as a catalyst for a sustained bull market, the effects of which extend far beyond China and are particularly relevant for investors in the German-speaking region.