According to TechFlow, on October 7, CoinDesk reported that the recent strong rebound in China's stock market driven by stimulus policies may be attracting funds from cryptocurrencies and other Asian stock markets. Since late September, China's stock market has risen by 20%, while the price of Bitcoin has remained basically flat. Danny Chong, co-founder of the Multi-collateralization Protocol and co-founder of the Singapore Digital Asset Association, said: "Even if it costs 3% to 5% to convert USDT to stocks, the potential upside of 50% to 70% in Chinese stocks still makes it a wise choice."

However, Chong believes the shift is likely to be temporary. “Once the recent uptrend in Chinese equities stabilizes, we expect funds to flow back into the cryptocurrency market,” he said. The Shanghai Composite Index has risen more than 20% since Sept. 24, hitting its highest level since May 2023. The Hang Seng China Enterprises Index has risen more than 25%. The rally stems from a series of stimulus measures, including interest rate cuts, liquidity support for the stock market, recapitalization of the banking system and promises to support housing prices.