Next Big Crypto Narrative Is Here - Get In Early For Massive Gains!
Positioning yourself early in the strongest crypto narratives gives you the best chances for earning big profits.
Since the release of ChatGPT, we’ve seen Artificial Intelligence having a massive influence on AI-related tokens as many have soared.
But a new narrative is here and it’s coming from Asia.
In this post, we will go over major recent macroeconomic events that could trigger the next massive crypto rally and how you can profit from it.
In a future post, I will cover tokens that I think could generate the highest returns during the next crypto rebound.
Which recent events triggered the East Asian narrative?
China injecting billions into its economy
On Feb 17, Bloomberg reported that the People’s Bank of China injected 632 billion yuan (approximately $92 billion) into the Chinese economy through reverse repurchase contracts. This is the largest recorded single-day liquidity injection in Chinese history.
This comes as a measure to boost the Chinese economy after China abruptly removed Covid-related restrictions and abandoned the zero-Covid policy at the end of last year.
This injection has had some very positive impact on China-related tokens such as Neo, Conflux, or Cocos which have surged in the past week.
Hong Kong unbanning of crypto
At the same time as China announced its massive economic injection, Hong Kong revealed its ambition to become an Asian crypto hub and its loosening of crypto regulation.
However, there has been a lot of misconception as to what Hong Kong has actually announced.
Some articles have reported that as of June 2023, Hong Kong will be allowing all its citizens, including retail investors to buy, sell, and trade cryptocurrency because of a misleading tweet. But it’s more complicated than that.
Although Hong Kong is effectively easing restrictions around crypto trading, it doesn’t mean that crypto is going to become fully legal for everyone. In fact, only institutions and professional traders will be able to trade certain (not all) coins and tokens.
However, the Hong Kong government has suggested that the Securities and Futures Commission (SFC) which is responsible for regulating securities may in the future grant retail access to virtual assets and is currently examining which cryptocurrencies to provide to retail traders.
What’s more, mainland China has shown signs of approval towards Hong Kong’s warming up to crypto.
As you might know, in September 2021, China banned all cryptocurrency transactions. Hong Kong being under Chinese sovereignty was of course affected by the ban.
Beijing showing support for Hong Kong’s crypto ambitions might be an indication that the idea to lift the crypto ban has started to emerge in China.
Imagine the consequences that the Chinese unbanning of crypto for retail traders would have on the markets. I think this would make any crypto pump we’ve seen so far seem minuscule.
Although this probably won’t happen in the near future, recent news from Hong Kong is a step in the right direction.
Increase rate of crypto adoption among Southeast Asian countries
Recently, the biggest bank in Southeast Asia, DBS, revealed that Bitcoin trading volume has gone up 80% and Ethereum 65% on its cryptocurrency exchange in 2022. It has also seen its customer base double.
The record trading volumes and the significant increase in the number of Bitcoin and Ethereum kept by DBS signal a growing adoption of digital assets in Southeast Asia adding another brick to the East Asian narrative.
US tightening of crypto regulation
Finally, the US clamping down on crypto could very well mean the next big crypto comeback will come from the East.
While I do believe that cryptocurrencies need an enforceable regulative framework to become massively adopted, I also believe any sort of banning is counterproductive and drives innovation offshore.
By banning staking and putting pressure on stablecoins, the US is effectively shooting itself in the foot.
According to The U.S. Securities and Exchange Commission, the ban on crypto staking is meant to protect retail investors from further harm after the spectacular crashes of crypto lending platforms such as Celsius and BlockFi in 2022.
But history teaches us that prohibiting something doesn’t make it go away. The recent actions of the SEC may push users towards fishy offshore exchanges where they will potentially be even more vulnerable.
On Feb. 13, the SEC issued a notice to the company that issues the Binance stablecoin, BUSD, alleging that the stablecoin is an unregistered security.
This is problematic, as a security is defined as an “investment made with the expectation of a profit” which is the opposite of what a stablecoin is.
I think that the US banning and attacking various crypto-related concepts is an easy way out for a government lacking expert blockchain knowledge and at loss as to how to create a regulative framework around this new technology.
It’s a shame because no hole is ever left unfilled. Opportunistic nations such as Abu Dhabi and UA are investing heavily in Web 3 projects and the crypto industry will likely move away from USD-based stablecoins. This could go as far as to undermine the US global dominance.
What now?
This is all very informative, but how can we profit from all this news?
One way is to make a list of projects born on the Chinese ground, with heavy Chinese backing, or with Chinese teams. Some have already been on the rise but have come down in the past few days.
If (and only if) the Bitcoin rally continues, Chinese coins are well placed for future massive gains.
Some of my favorite ones are Filecoin, VeChain, Polkadot, Conflux, and Alchemy Pay. I will be covering these and some others in a future article soon.
You can also borrow Miles Deutscher’s strategy to create a list of Twitter accounts that regularly post updates on Chinese related crypto projects and automatically translate them using the Twitter translate function.
Here are the 10 accounts he suggests we follow to stay ahead of the game: @diamondhandjs, @HalfWS, @tiabitcoin, @RaccoonHKG, @0xzhujun, @CryptoYunqi, @RebaseMMT, @wolongkm, @spark_ren, @NoodleofBinance.
Final Thoughts
In this post, we discussed why the next big crypto rally could come from East Asia and particularly from China.
While the US is closing itself to blockchain innovation by overregulating cryptocurrencies, China is starting to relax rules around crypto trading and may potentially reconsider its crypto ban, just like India did in 2020.
With the growing interest and adoption of cryptocurrencies in East Asia, the next big crypto narrative can emerge from this region. By investing early and strategically, there is potential for significant gains.
Some of these Chinese projects might have questionable fundamentals, but can generate big profits for an opportunistic trader on the back of a major China-related rally.
In a future article, I will go through Top10 Chinese coins to pay close attention to in the following weeks and months.
PS: If you want to learn how to make a consistent profit from the Metaverse in 2023 and beyond, check out my free guide How To Make Your First $1000 In The Metaverse.
Join Medium using my referral link and get exclusive access to more stories like this one and to a wide range of quality content from thousands of writers for just $5/month.
Disclaimer: This content is for educational purposes only and should not be considered as financial or any other advice. Always do your own due diligence before investing your hard-earned money.
New to trading? Try crypto trading bots or copy trading on best crypto exchanges
Join Coinmonks Telegram Channel and Youtube Channel get daily Crypto News