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Cryptocurrency investor Lark Davis tweeted, “2023’s China liquidity pump is not priced in IMO!,” regarding EOS’ 25% rally in just three days.
2023's China liquidity pump is not priced in IMO! #bitcoin #crypto #stocks
— Lark Davis (@TheCryptoLark) February 20, 2023
While EOS struggled to get past its resistance range in early 2023, recent information suggests that China is involved in EOS’s rally. On January 31, Davis noted that instead of pursuing a heavy-handed ban policy on crypto, China decided to tax it at 20%.
Therefore, a strong surge in liquidity is anticipated from China, with EOS expected to absorb a prominent share. Moreover, according to a ranking conducted by the Center for Information and Industry Development of China, Chinese traders preferred EOS over other coins.
Additionally, the price of Bitcoin increased last week to a new yearly high of US$25,100 as more than US$100 billion entered the market. According to trusted sources, the majority of the recent buying activity took place around the same time that Coinbase CEO Brian Armstrong tweeted the message about the start of widespread cryptocurrency trading in Hong Kong.
While Armstrong’s tweet undoubtedly wasn’t the catalyst for the market’s growth, it does lend credence to the broader story that Asian nations are starting to view cryptocurrencies more favorably.
Experts remind that although Hong Kong will start issuing cryptocurrency licenses to authorized institutional investors on June 1, retail cryptocurrency trading for regular Hong Kong residents is still firmly out of the question.
Furthermore, in an effort to boost the country’s flagging economic activity in the wake of the strict “zero Covid-19” policy, China’s central bank also injected around US$90 billion worth of new capital into domestic markets at the same time that money began flowing into cryptocurrencies.
Moreover, on February 15, Hong Kong-based crypto company Conflux (CFX) declared that it is launching a blockchain-based mobile SIM card in partnership with China Telcom. Since then, the Conflux’s CFX token has experienced a 677% rise in the last month.