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The Chinese government’s failure to introduce more economic stimulus at its latest briefing today could lead to investors returning to the crypto market, QCP Capital said.
“The rally in Chinese stocks fizzled following their week-long holiday as a government briefing failed to introduce new economic stimulus,” QCP said in an Oct. 8 post. “As the Chinese rally wanes, we anticipate capital reallocation back into crypto.”
The investment firm added that it maintains a “medium-term optimistic stance” towards the crypto market and predicted that US election headlines will continue “driving crypto movement.”
Chinese Stocks Tumble Due To Lack Of Economic Stimulus Updates
Chinese investors anticipated that the National Development and Reform Commission (NDRC) would outline additional stimulus measures in a briefing today following the Chinese Golden Week holiday.
But with no new stimulus plans unveiled and the perception of a lack of urgency, underwhelmed investors took profits from the recent rally in Chinese and Asian stocks.
Stocks linked to the Chinese stock market subsequently underwent a sharp pullback in the Asian trading hours of today’s session. Alibaba Group and JD.com saw their share prices drop around 8% and 12%, respectively.
The MSCI AC Asia Pacific equity index also recorded its largest drop in a month. Meanwhile, Hong Kong equities suffered their biggest single-day loss since the 2008 market crash.
🩸BREAKING:
Hong Kong's Hang Seng index crashes to worst day since 2008. pic.twitter.com/37GxlSnq51
— Radar🚨 (@RadarHits) October 8, 2024
Majority Of The Top 10 Cryptos Suffer 24-Hour Losses
Crypto prices followed a similar trend to that of stocks in the Chinese market, with Bitcoin falling to as low as $62,000 during US trading hours yesterday before recovering to $62,700 during today’s Asia hours. BTC has since retraced to trade at $62,435.74 as of 8:43 a.m. EST.
Many of the rest of the top 10 cryptos saw their prices dip as well. Only Binance Coin (BNB) and Tron (TRX) were able to record slight gains in the last 24 hours. Overall, the crypto market cap dropped more than 1% in the past trading day.
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