China’s Latest Crypto Policy Change Could Give Bitcoin More Fuel For A Bull Run

Traditionally a prudish market for crypto investors, China could unleash the likes of Bitcoin and Ethereum on a fresh bull run. 

The latest policy change sees China grant licenses to crypto exchanges to bring the asset into the Chinese mainstream financial markets. 

The Chinese regulators have already granted licenses to two trading platforms, namely OSL and HashKey, which allows them to serve retail customers in the city of Hong Kong - a major financial center and a special administrative division of China. 

Hong Kong is seeking to fill the void that was created by the SEC’s latest crackdown on crypto trading platforms. 

The enormous Chinese market re-entering the crypto sphere with renewed momentum could help the broader crypto market mark a turning point in an otherwise mixed 2023. 

2023 - A Year Of Uncertainty For The Crypto Market

The global crypto market has been shaky at best throughout 2023. While the start of the year saw Bitcoin bounce back considerably, the broader market has not seen many spectacular bull runs this year. 

This could all change with Chinese capital flooding the market. However, the receptiveness of Chinese regulators to go all-in on crypto remains to be seen. 

As it stands at the point of this writing, the Crypto Fear and Greed Index shows a moderate value of 54/100, which could shift as the Chinese retail crypto market comes online. 

Bitcoin, the dominant cryptocurrency on the market, has slightly dipped after nearly doubling from the November low of $16K. However, if Chinese regulators accelerate the licensing process, the volume of BTC trades could increase considerably - marking a turning point and the start of a possible bull run for Bitcoin. 

As volatility dies down, BTC could become a more attractive investment for the traditionally risk-averse Chinese retail investors, further strengthening the case for a turnaround. 

Buying Bitcoin is frequently the first mode of action for inexperienced and prudish crypto investors, while the rest of the market closely observes the price dynamics of the largest cryptocurrency.

Whether and when this becomes a reality remains to be seen, but one thing is for certain - China is eager to fill the gaps left by U.S. regulators and build up its reputation as the next hottest destination for crypto investors.