China’s ChiNext Market is a tech-focused index akin to Nasdaq. The Shenzhen based index is currently crumbling: down nearly 8% today and more than 27% over the last three weeks.
ChiNext in Free Fall
The ChiNext market has suffered tremendous losses recently. According to Reuters, the index is crumbling because of policy concerns. The dramatic losses come as Morgan Stanley advised it’s clients to avoid Chinese stocks Friday Morning, telling their clients “Don’t buy this dip”. Evidently analysts at Morgan Stanley don’t think this is rock-bottom, and the charts agree. The ChiNext has lost nearly 8% and is still moving downwards.
So, What Does this Mean for Bitcoin?
We already know that the Chinese Bitcoin markets have a tremendous amount of control over bitcoin, but will that increase? The bear market that is looming in China certainly suggests Chinese interest in bitcoin may rise. As investors flock to get their money out of the tumbling stock market, how many of them will elect to convert their fiat to bitcoin?
What do you think – Will the Chinese Market crash be a boon for bitcoin? Share above and comment below
UPDATE: The ChiNext is now down more than 8.5% and still sliding
Featured image from Shutterstock.