SHINOBI - BTC: Moving sideways, deflation in China affects bitco
Bitcoin currently has a market capitalization of $509 billion, accounting for 48% of the cryptocurrency market. As of 7:50 a.m., the market cap was $1.62 trillion, up $4 billion from 24 hours ago. At the same time, the market's 24-hour trading volume decreased by 11.37% compared to August 20, reaching $21.84 billion.
How China's Deflation Affects Bitcoin Prices
According to Cointelegraph, cryptocurrency analyst Marcel Peschmann argues that China's deflation will have short- and medium-term impacts on commodities, bitcoin, and growth-dependent stocks in the global economy.
"Don't own stocks that depend on global economic growth or use excessive financial leverage," Petchman warned. “And it’s probably not a good time to hold commodities, so if China’s growth slows, we expect it to have a negative impact on bitcoin prices in the short and medium term.”
On August 9, China's National Bureau of Statistics announced that the country's consumer price index (CPI) fell by 0.3% year-on-year in July, the first drop since February 2021.
Petchman also explained how the expansion of the Federal Reserve's (Fed) balance sheet would affect assets such as Bitcoin. The U.S. Treasury has huge deficits because the government spends more than it earns, he said. Therefore, the time will come when the US government will have to deleverage some of its debt rather than continue to shrink the Fed's balance sheet.
Inflation will be the hardest hit, he said, as the Fed is forced to expand its balance sheet. The analyst advises owners of scarce assets like Apple stock, real estate, gold and bitcoin to hold on and not be fooled by the current short-term inflation slowdown.
How China's Deflation Affects Bitcoin Prices
According to Cointelegraph, cryptocurrency analyst Marcel Peschmann argues that China's deflation will have short- and medium-term impacts on commodities, bitcoin, and growth-dependent stocks in the global economy.
"Don't own stocks that depend on global economic growth or use excessive financial leverage," Petchman warned. “And it’s probably not a good time to hold commodities, so if China’s growth slows, we expect it to have a negative impact on bitcoin prices in the short and medium term.”
On August 9, China's National Bureau of Statistics announced that the country's consumer price index (CPI) fell by 0.3% year-on-year in July, the first drop since February 2021.
Petchman also explained how the expansion of the Federal Reserve's (Fed) balance sheet would affect assets such as Bitcoin. The U.S. Treasury has huge deficits because the government spends more than it earns, he said. Therefore, the time will come when the US government will have to deleverage some of its debt rather than continue to shrink the Fed's balance sheet.
Inflation will be the hardest hit, he said, as the Fed is forced to expand its balance sheet. The analyst advises owners of scarce assets like Apple stock, real estate, gold and bitcoin to hold on and not be fooled by the current short-term inflation slowdown.
