How could the Chinese economic crisis impact Bitcoin and crypto?

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In the latest episode of Cointelegraphs Macro Markets, analyst Marcel Pechman explores how Turkey’s recent interest rate hike could attract hundreds of millions of new cryptocurrency investors, and how the looming economic crisis in China could affect Bitcoin (BTC) and crypto globally.

Turkey’s central bank raised the interest rate from 6.5% to 15% in a dramatic attempt to curb inflation. The move comes as the local currency, the lira, has fallen 80% against the US dollar in five years.

According to Pechman, whether the US dollar retains its dominant position as the world’s reserve currency does not matter. The 70% inflation in Turkey and Argentina in 2022 are prime examples of how decentralized cryptocurrencies could be the only lifesaver for hundreds of millions if not billions of people who cannot save and make money. foreign currency transactions.

The next part of the show examines whether China’s economic weakness is impacting Bitcoin and how its central bank digital currency could increase demand for cryptocurrencies. Goldman Sachs economists cut their estimates for China’s gross domestic product growth to 5.4%, citing challenges in the housing market, widespread pessimism among consumers and private entrepreneurs and moderate policy easing.

Pechman shows how the iShares MSCI China exchange-traded fund has been a better indicator of Bitcoin price and explains the importance of the Chinese economy to global growth. Ultimately, for Pechman, if the Chinese stock market goes down, there is a good chance that cryptocurrency prices will also be under pressure.

Finally, Pechman presents a bullish case for cryptocurrency adoption during a recession or weaker growth, in the case of China, including stimulus checks used to buy cryptocurrencies.

Macro Markets runs exclusively on the new Cointelegraph Markets & Research YouTube channel, so be sure to like and subscribe today!

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