Bitcoin has been rampant around the world, conquering cities and territories, but due to special reasons in China, Bitcoin is not allowed to be legalized in China for the time being. This move is to buy time for the development of China's virtual currency.
When the wolf comes, the sheep cannot resist and can only be eaten. If you want to avoid being eaten, you can only practice hard to quickly become a wolf. How to become a wolf takes time. This is the real reason why the Chinese government does not allow Bitcoin to be legalized in China quickly.But temporarily not allowed does not mean forever not allowed. Sooner or later it will be allowed, it will be liberalized, and it will be legal. Because blockchain, virtual currency, artificial intelligence and other high-tech technologies have become a global consensus. China cannot be self-sufficient, it cannot sit in a well and watch the world, and it cannot be complacent. It must keep pace with the times and keep pace with the world.

Bitcoin's strong correlation with global liquidity makes it a valuable macroeconomic bellwether for investors and traders. Compared to other asset classes, Bitcoin's correlation is not only strong, but also has the highest degree of directional consistency with global liquidity conditions. One can think of Bitcoin as a mirror reflecting the rate of global money creation and the relative strength of the US dollar. Unlike traditional assets such as stocks, gold or bonds, Bitcoin's correlation with liquidity remains relatively pure.

However, Bitcoin’s correlation is not perfect. These findings suggest that the strength of Bitcoin’s correlation decreases over shorter time periods, and also demonstrate the importance of identifying periods when Bitcoin’s correlation with liquidity tends to break down.