You can also read this news on COINTURK NEWS: Stock Market Rises While Bitcoin Continues Downward bitcoin Trend
In response to Beijing’s ambitious plan to revitalize China’s domestic stock market with a $278 billion injection, both Hong Kong’s Hang Seng Index and the CSI 300 experienced positive movements. However, Bitcoin and the cryptocurrency world seem to be unaffected by this significant development, as they witnessed major declines last evening.
Bitcoin’s Steady Decline Amidst Stock Market Gains
As of the latest update, Bitcoin is down by 2.3%, trading below the $40,000 level. The difference in Bitcoin’s response compared to the rise in traditional stock indices prompts an exploration of the complex dynamics at play.
Beijing’s strategy involves using state-owned enterprises’ offshore accounts and local funds for stock investments through the Hong Kong stock connection and other measures yet to be announced. This offshore fund injection aims to increase liquidity and restore confidence in the stock market, which saw significant declines last year.

Specifically, Hong Kong’s Hang Seng index rose by 2%, while the CSI 300, representing mainland China stocks, recorded a 0.15% increase in response to the proposed plan. Despite these positive movements in traditional markets, Bitcoin appears to be charting its own course, influenced by factors outside the scope of China’s stock market gains.
Bitcoin’s Influences: ETF Inflows and Yuan Dynamics
Current market dynamics suggest that Bitcoin is more sensitive to inflows into exchange-traded funds (ETFs) and significant outflows from the Grayscale Bitcoin Trust (GBTC). Additionally, analysts are closely monitoring the efforts of the People’s Bank of China to support the yuan against the backdrop of a declining stock market and the strengthening dollar. The inverse correlation between Bitcoin and USD adds a layer of complexity to price movements.
David Brickell, Head of International Distribution at Toronto-based crypto platform FRNT Financial, suggests a cautious approach, noting that “China is being encouraged to apply a watch over BTC to maintain a semblance of currency stability and deter capital flight.”
Amidst differing opinions, some market observers adopt a more optimistic stance. Greta Yuan, Research Director at VDX, a regulated exchange in Hong Kong, highlights the potential positive ripple effects of China’s economic recovery on the global economy. She notes that such stimulus measures are perceived as a risk by the cryptocurrency market, but they will encourage innovation and increase market activity.
The post first appeared on COINTURK NEWS: Stock Market Rises While Bitcoin Continues Downward Trend

Leave a Reply

Your email address will not be published. Required fields are marked *