A Very Big Opportunity: Crypto Braced for a ‘Tremendous’ China Earthquake

The crypto market has been on a wild ride lately, with Bitcoin, Ethereum, and XRP prices booming. But what’s behind this sudden surge, and what does it mean for the future of cryptocurrency?

A New Era for Crypto?

Bitcoin has topped its previous all-time high, climbing above $70,000 per bitcoin, helping Ethereum to triple and Ripple’s XRP to add almost 50% since their 2022 lows. This sudden surge has left many wondering what’s driving the market. According to Ripple’s CEO, it’s only a matter of time before China reopens its digital doors to crypto after its 2021 crackdown crashed the bitcoin price.

“Is China going to open up [to crypto]? I’d say it’s inevitable,” said Brock Pierce, a former child actor who cofounded the USDT dollar-pegged stablecoin issuer Tether in Hong Kong a decade ago.

Pierce, who is also chairman of the Bitcoin Foundation, teased a new Hong Kong-based venture, saying he’s “enthusiastic about what’s happening in Hong Kong,” a special administrative region of China that has recently greenlit a handful of spot bitcoin and ethereum ETFs, following in Wall Street’s footsteps.

A Warning to China’s Small Banks

This week, G7 leaders plan to warn small banks in China over their Russia ties after sanctions have “stoked the use of underground financing channels or banned cryptocurrency.” The meeting is expected to focus on the threat posed by burgeoning Chinese-Russian trade to the war in Ukraine.

“Our concern is that China is increasingly the factory of the Russian war machine. You can call it the arsenal of autocracy when you consider Russia’s military ambitions threaten obviously the existence of Ukraine, but increasingly European security, NATO and transatlantic security,” said Daleep Singh, deputy national security adviser for international economics.

A Big Opportunity in Hong Kong

Last month, attendees of a Hong Kong bitcoin conference sparked speculation that the much-hyped Hong Kong spot bitcoin ETFs could eventually be opened up to mainland China investors.

“I think Hong Kong is ahead in many ways,” Pierce said. “I think the main opportunity in Hong Kong is in [traditional finance], and that’s where a Hong Kong digital dollar stablecoin has tremendous potential.”

Hong Kong’s financial hub

Pierce added that China’s supply chain advantage means “there’s clearly a very big opportunity that exists [in Hong Kong].”

Bitcoin and Ethereum prices

The future of cryptocurrency is uncertain, but one thing is clear: China’s involvement could be a game-changer. Will China reopen its digital doors to crypto, and what does this mean for the future of Bitcoin, Ethereum, and XRP?

A bitcoin and crypto investor

Only time will tell, but one thing is certain: this is a very big opportunity that could change the face of cryptocurrency forever.