As China announced a series of policies to stimulate the economy, the Chinese stock market also experienced a rebound. The cryptocurrency market has a large number of Chinese as market participants, and some of them have even begun to abandon the currency circle and return to A-shares. This has also drawn special attention to how China's economic policies will affect capital flows. Meng Yan, co-founder of Solv Protocol, recently expressed his views on this and talked about the impact of the US election on the Web 3 industry.

(Chinese stocks soar as manufacturing shrinks less than expected, crypto-villagers look to A-shares)

The mad bull has started, China’s currency policy is just a prelude

First of all, Meng Yan made it clear that he believes that the current enthusiasm in the global market has been ignited, and this sentiment is not limited to specific markets. However, the Chinese market is experiencing a long period of drought, and A-shares are not alone. They are just the craziest one in the herd. Here he also hinted that A-shares are just the beginning of a big bull market. He also said that the Japanese market is always the most special one, so it has no reference value. Japan's Liberal Democratic Party has elected Shigeru Ishiba as president, meaning he will become Japan's 102nd prime minister.

("Ishiba" is shocking! Shigeru Ishiba will be the Prime Minister of Japan, will the Japanese yen arbitrage battle royale start again? )

He said: "Since 2020, the currency market has been characterized by starting late, jumping high, crashing quickly, and falling deeply. Due to the small market value, opacity, and lack of supervision, once the currency market takes off, the amplitude will be extremely high. "This passage also adds imagination to the growth space of the next market, but 2020 has only been one cycle so far, so such a small sample may not be of much significance, and the last cycle coincided with the help of the epidemic and monetary policy.

Don’t touch things you don’t understand. The currency circle only focuses on “when to sell”

However, he said that he can take advantage of the time difference and speculate in the stock market first, and then consider returning when the bull market in the currency circle comes. From here we can see that from his point of view, the bull market in the currency circle is not urgent yet, and the stock market may rebound first. Or the currency circle may have to wait until there is a capital overflow in the traditional financial market before it is possible to usher in a bull market.

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But he also said that if you have never been exposed to A-shares, staying in the currency circle is also a good choice, because the range of fluctuations here will never be imaginable in the stock market. He pointed out that there is always only one problem in the currency circle, when to sell. When the conversation changed, he also said that he would not play A-shares. It was not that he did not understand the logic behind these policies or underestimated their intensity. It’s because I haven’t paid attention to this market for a long time and I think I don’t have the basic professional knowledge to solve the problem of “when to sell”. Therefore, it is better to choose to stay in a market that you are familiar with.

Here he revealed his trading logic and did not touch the market that he did not understand. This may also be a misunderstanding of many novice investors. They always lose a lot of money when they are ignorant. It may be a better approach to choose a market that they are familiar with, although the author subjectively believes that he is promoting the currency circle here.

Meng Yan’s views are consistent with VanEck’s. The copycat season still depends on the general election.

Finally, he also mentioned that the US election has a huge impact on the entire Web 3 industry. We can refer to his blog a few days ago. He said that Trump’s stance on the industry has been determined, and if he is elected, he will implement a series of policies. He believes that Trump’s election will have a relatively certain impact on the industry. It seems that He Jinli has not yet figured out her stance on this industry, so if He Jinli is elected, all possibilities are possible.

As for the industrial policies of the two candidates, are they deceiving votes or intentional? He said that in fact, the currency circle does not have much impact on the economy, immigration and other issues, so the two candidates will not lie about it. Especially Trump, who didn’t even bother to speak nicely to the Russia-Ukraine war, let alone the currency circle.

He also pointed out that the two people’s attitudes towards the industry are actually very consistent with the tone of their political parties. The Republican Party emphasizes personal freedom and has the same value as the encryption industry. The Democratic Party is a highly disciplined organization that values ​​the expansion of government power and the strengthening of controls. However, he also believes that the Biden and Harris governments are indeed more attentive to the development of high-tech industries. Therefore, if Web3 proves to be a high-tech industry development direction with strategic value in the next few years, He Jinli's recent speech also reserves sufficient flexibility.

He believes that no matter what the outcome of the election is, BTC’s own bull market is bound to happen. This matter is relatively less affected by the election results and has a higher degree of certainty. But whether the altcoin is a bull or a bear, a big bull or a calf, the impact of the election results will be more severe.

This argument may be consistent with our previous coverage of VanEck's position that a Trump election would be good for the entire market. If He Jinli is elected, clearly regulated assets such as Bitcoin and Ethereum will absorb the market share of altcoins.

(Institutions are different from what you think! VanEck: He Jinli’s election is more beneficial to Bitcoin)

This article Meng Yan: The mad bull has started, A-shares are just the beginning, and the season of exposing copycats depends on the US election. It first appeared on Chain News ABMedia.