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REDDIT

A hypothesis on exited Chinese Luquidity

With the "orange king" escalating tensions with China by imposing a 125% tariff, and china's retaliatory tariff to US, China's stock market is experiencing a sharp decline.

Meanwhile, other countries have been granted a three-month pause before implementing any reciprocal tariffs, and financial markets in most regions outside China are trending upward.

**Hypothesis:** Given the current conditions, there's a strong possibility that a significant portion of the liquidity exiting the Chinese stock market could flow into cryptocurrencies. Unlike traditional markets, crypto assets are not constrained by national borders, making them an attractive destination for capital seeking refuge from geopolitical and regulatory uncertainty.

Thoughts?