I would rather drown in the cryptocurrency circle than be scammed in the A-share market! !

When the A-share market opened today, Chinese stockholders seemed to be unable to hold back, as if they were about to fire a "sky rocket" at the world. However, foreigners believe that China's economic problems have not yet been solved. They analyzed that the A-share market is siphoning funds from the crypto market, but this rise may be difficult to sustain.

Take myself as an example. I bought China Duty Free when the epidemic was lifted. Now I have to have 12 consecutive daily limit boards to get out of the trap. In this way, many expectations seem to be just empty talk.

Recently, driven by the Chinese government's stimulus policies, the Chinese stock market has rebounded. But it is worth noting that this rise may be siphoning funds from the crypto market, which in turn affects the rise of cryptocurrencies such as Bitcoin. Since September 24, the Shanghai Composite Index has risen by more than 20%, setting a new high since May 2023. However, Bitcoin prices are still hovering around $64,000 after China's stimulus policy was introduced, having maintained a six-month consolidation period in the $50,000 to $70,000 range.

Market observers point out that despite the Chinese government's launch of an economic stimulus package of more than 7.5 trillion yuan, which is widely seen as super positive news for Bitcoin and other risky assets, Bitcoin prices have not seen a significant rise. Danny Chong, co-founder of the Singapore Digital Asset Association, said that this capital transfer may only be temporary, and once the upward trend of the Chinese stock market stabilizes, funds are expected to flow back into the crypto market.

Conclusion:

Traditional market analysts believe that China's latest stimulus measures do not solve the fundamental economic problems and may not bring long-term stock market gains. TS Lombard pointed out in an October 2 report that unless some fundamental problems are solved, such as repairing the bank's balance sheet, any attempt to increase lending and take on leverage risks may fail. BCA Research also said that the rise in the Chinese stock market may not last. In this game of funds, the future direction is full of uncertainty.