- The Chinese coins narrative is gaining momentum after Hong Kong’s announcement to legalize crypto trading effective June 1, 2023.
- Chinese coins Filecoin, NEO, Conflux, VeChain, Qtum among others yielded double-digit gains over the past week.
- Crypto analysts are bullish on massive price rallies in Chinese coins and believe that the narrative is here to stay.
Hong Kong is set to officially make crypto purchasing, selling and trading entirely legal for all its residents effective June 1, 2023 according to reports. The announcement has fueled a rally in Chinese coins and the “China narrative” has gathered steam in the past week.
Crypto analysts believe the China coin narrative is here to stay and holders can expect further gains from Filecoin (FIL), NEO, Conflux (CFX), VeChain (VET) and Qtum (QTUM).
Also read: Is the ChatGPT effect on crypto AI tokens sustainable?
What is the China narrative and what does it mean for cryptocurrency prices?
Hong Kong’s recent announcement for legalizing crypto trading for its residents fueled a bullish sentiment in the crypto community giving rise to the “China” narrative. The narrative gathered steam over the past few weeks as analysts and crypto influencers tweeted about it and shared watchlists of Chinese coins for traders.
Miles Duetscher, a crypto analyst and trader shared the following list of Chinese coins. The expert believes that the China narrative is here to stay and holders of the tokens can expect further gains until June 2023.
Watchlist of top performing Chinese coins
As seen in the list above, Chinese coins in the top 100 cryptocurrencies by market cap, Filecoin (FIL), VeChain (VET), Neo (NEO) and Conflux (CFX) have yielded 76.45%, 26.54%, 29.50% and 310.15% gains for holders respectively.
The China narrative is the key factor driving the massive price rallies in these tokens, in addition to alpha from Chinese content creators and developments in the respective crypto projects.
Crypto market participants are big on narratives in 2023, after the Artificial Intelligence narrative inspired by ChatGPT, and Metaverse narrative inspired by Meta’s earnings report and its dedication to building crypto’s metaverse, the China narrative has become increasingly popular among traders.
In addition to Hong Kong’s crypto plans, experts on crypto Twitter have noticed that massive liquidity injections by People's Bank of China (PBoC) coincide with the upsurge in crypto market capitalization.
An analyst on crypto Twitter argued that the China easing narrative is real and the central bank ramped up its liquidity injections in February 2023.
The China easing narrative is not some imaginary garbage
— Crypto熊猫 (@NoodleofBinance) February 18, 2023
Look at the liquidity injections China is ramping up in Feb - most recent 835B CNY via reverse repurchase
Monie printer goes brrrr from the EAST
oh, sorry US inflation, China exporting moar pic.twitter.com/LMmNLP1xHQ
Since this move by PBoC is typically followed by a spike in cryptocurrency prices, experts are bullish on Chinese coins and a continuation of their uptrend in the short-term.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US SEC sues Coinbase after regulatory crackdown on Binance
The US SEC said Tuesday that it sued crypto exchange Coinbase, alleging that the platform operates as an unregistered security exchange. The announcement comes a day after the regulator filed a similar lawsuit against Binance, in a sign that the clampdown is extending to key players in the industry.
Ethereum tokens worth $3.1 billion moved on the blockchain as traders brace for incoming selling pressure
Ethereum circulation climbed to 1.73 million tokens on June 6, signaling a rising utility of the altcoin. A large volume of Ethereum’s supply has moved off exchanges, likely to self-custody wallets, alongside the Securities & Exchange Commission’s (SEC) crackdown on Binance.
SEC triggers crypto bloodbath as Coinbase, Kraken brace for token delistings after Binance lawsuit
The Securities & Exchange Commission (SEC), the premier US financial regulator, now controls $115 billion in cryptocurrencies with its lawsuit against Binance. In its latest move against Binance Holdings Ltd., the regulator expanded a list of digital tokens deemed unregistered securities.
Optimism price could shoot up by 30% after OP whales accumulation spree
Optimism (OP) price shows strength despite the market-wide sell-off on June 5. Additionally, the technicals and on-chain metrics both strongly suggest a bullish future for OP holders.
Bitcoin: BTC targets $30,000 as short-term bias turns bullish
Bitcoin (BTC) price shows a clear sign of the bulls’ victory. After failing to trigger a steep correction, bears look now out of context, at least in the short term, allowing buyers to restart a minor uptrend.