China's credit impulse has picked up, showing a renewed credit expansion relative to the growth rate. This increase can provide a supportive environment for risk assets, including cryptocurrencies, and trigger a global financial cycle. Moreover, similar bull revivals in Bitcoin have been seen after the credit impulse bottomed out, in May 2015 and December 2018. Analysts expect a continued increase in the credit impulse in the coming months. This increase can bring a new wave of liquidity, fueling the risk assets and crypto. Such a situation could be beneficial for Bitcoin and may even contribute to the six-fold rally that was seen after the coronavirus-induced crash of March 2020.
Sarah Walker
- 2023-04-12
Credit Impulse Picking Up, Could Provide Support To Bitcoin
A renewed credit expansion relative to the growth rate has been observed in China. This increase in credit impulse can provide a supportive environment for risk assets, including cryptocurrencies, and may even contribute to the six-fold rally of March 2020.
