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Tron founder Justin Sun boldly claimed that China has begun injecting liquidity into its economy ahead of the U.S., and implied that this move will lead to significant gains in the cryptocurrency market. Alluding to a potential surge in crypto prices, Sun remarked:
“You know what that means: all crypto will go to the SUN.”
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This is not the first time the Tron founder has made such predictions. Previously, he sparked rumors that China might lift its ban on cryptocurrencies, creating excitement within the crypto community. While there haven’t been any official steps to reverse the ban, Sun’s comments continue to draw attention from investors and enthusiasts.
Sun’s latest comments follow a recent Bloomberg report detailing the People’s Bank of China’s (PBoC) efforts to boost the nation’s slowing economy. Under the leadership of Governor Pan Gongsheng, the PBoC has introduced several significant policies designed to restore growth.
China’s Complicated Crypto History: Can a Liquidity Injection Shift the Tide?
China is currently battling with deflation, a condition that economists at the Institute of International Finance (IFF) attribute to industrial overcapacity and a real estate recession. Both factors have been long-standing issues in China, and the recent stimulus package represents a serious effort to address these economic challenges.
The nation has had a complex relationship with cryptocurrencies for years, starting with a ban on crypto exchanges in 2017, followed by a wider ban in 2021 targeting crypto trading and mining. Despite these restrictions, China remains a major player in Bitcoin mining and still has an impact on the global crypto market.
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While the Chinese government’s economic stimulus is anticipated to have a positive impact on Bitcoin (BTC) prices, the crypto community is already feeling optimistic. Investors are hopeful that the liquidity injection will renew interest in cryptocurrencies, pushing their values higher.
As China takes steps to stimulate its economy, the potential effects on the global crypto market could be significant, making Sun’s bold predictions even more interesting to watch in the coming months.
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