The digital asset sector has witnessed significant developments in the aftermath of Donald Trump recent win in the U.S. presidential election. According to Xiao Feng, the chairman and CEO of Hong Kong-based crypto exchange HashKey, Trump’s victory could play a pivotal role in lifting China’s longstanding crypto ban. Feng believes that the pro-crypto momentum triggered by Trump’s win will likely drive China to reconsider its restrictive stance on digital assets in the near future.
Since 2021, China has enforced a strict ban on cryptocurrency trading and mining. This has been a major hurdle for the global crypto market, as China was once one of the largest players in the digital asset space. However, Feng’s comments suggest that this could soon change. He stated, “If the U.S. Congress and the president make crypto policies clear, constantly legislate and promote the industry, it would certainly be a driving force for China to accept cryptocurrencies.”
Feng’s optimism stems from the broader global impact of Donald Trump win, which has already sparked renewed interest in the crypto sector. The market has seen significant growth following the Republican’s victory, with Bitcoin reaching new all-time highs and altcoins enjoying similar upward momentum. This has brought increased attention to China’s crypto policies, with many analysts speculating that the Asian giant may reverse its ban sooner than expected.
China’s Potential Shift On Crypto Policy
Feng’s forecast predicts that it may take around two years before China loosens its grip on digital assets. However, he suggests that the political changes in the U.S. could significantly influence China’s approach. As the U.S. solidifies its position as a crypto-friendly nation, China may be prompted to reconsider its policies in order to remain competitive in the global market.
Recent reports have further fueled these speculations. A CoinGape article highlighted that China’s economic stimulus measures, including an increase in government debt issuance and subsidies for low-income citizens, could provide a fertile ground for crypto adoption. As China boosts its economic support, there is growing optimism that the country’s crypto policies might also evolve.
Market Bullish Sentiment Intensifies Post-U.S. Elections
The U.S. elections have already had a profound effect on the global crypto market. Bitcoin’s price surged to a new all-time high, reaching $93K, and altcoins followed suit, recording significant gains. The broader cryptocurrency market cap has now surpassed $3 trillion, signaling a major bull run. This rise in institutional interest and retail enthusiasm has led many to speculate that the easing of China’s crypto restrictions could further accelerate the sector’s growth.
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Xiao Feng’s comments underscore a pivotal moment for the digital asset market. With the U.S. embracing crypto policies under Donald Trump leadership, China may be compelled to reverse its ban, which could have profound implications for the global economy and the future of cryptocurrencies. As the market continues to surge, all eyes are now on China’s next move, and whether it will seize the opportunity to integrate digital assets into its financial system.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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