China possibly lifting its crypto ban in Q4 is the hot topic on Twitter right now. This isn’t our claim, Twitter is full of such discussions. Some prominent Twitter crypto accounts are speculating this on the basis of current conditions in China. They believe that since China’s economic condition is worsening, they have no choice but to rely on crypto, or else they will be ruined.
40 Chinese Banks Vanished
Recent news indicates that 40 Chinese banks vanished in the last week of June. The Twitter account BitcoinHabebe tweeted a few hours ago, stating that no media is covering this, but 40 Chinese banks collapsed in just one week.
The situation is similar to the Savings and Loans (S&L) crisis in the mid-1980s that badly affected American banks. Aggressive lending growth, poor risk controls, and a significant drop in property prices are bleeding Chinese banks.
China’s History with Crypto & the Potential Ban Lift
In crypto history, China has often been the main reason for market bears gaining power. They have banned ICOs, mining, and anything related to crypto since 2013. Every time China took such steps, the market suffered heavily. China claimed they did this to save their economy, but now it seems they might need to rely on what they previously abandoned multiple times to save their economy.
Last month, TRON founder Justin Sun won a defamation case in the People’s Court of China.
Additionally, Bybit has started offering its services to the Chinese crypto community living outside of China.
What to Expect
Analysts believe that a crypto ban lift by China could positively impact the global cryptocurrency market.
Just as China’s anti crypto actions spread a lot of negativity for a long time, if this happens, it would be the best news in the current conditions. Overall, everything points towards a positive environment for crypto. Now, we just have to see when China makes this final decision and when the crypto community gets a chance to celebrate.
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