Are Recent Fiat Inflows from China Optimistic Signs for the Cryptocurrency Market?

The Asian market has long been a core component of the cryptocurrency space, both at the technological and the financial level. The majority of cryptocurrency mining giants, from the early days of Bitcoin (BTC), are companies with their roots in China. South Korean and Japanese markets have also had an affinity for digital assets, with increased capital flowing from their respective fiat currencies into cryptocurrencies. XRP is especially beloved in the Korean market, as South Korean Won (KRW) volume spikes had been observed several times. The level of interest is already high, without even talking about various blockchain projects that have their origins all across Asia. With such an imposing share of mining operations coupled with investor appeal, movements in Asian capital markets become a primary subject of interest to cryptocurrency users. As the crypto winter unfolds, the bear market cycle had its impact on traditional stocks as well. After a multi-month slump, however, Asian markets have started to show signs of recovery. The aggressive resurgence of stocks and equities in China from the start of 2019 has brought its investors a healthy dose of profits and optimism. Subsequently, capital markets participants might be looking to take their profits and move into new investment vehicles. The cryptocurrency market, being close to its lowest point since the last bull run, could present itself as an attractive investment opportunity to investors. Recent data indicates that capital inflows in cryptocurrencies denominated in Chinese Yuan (CNY) have been on the rise — closing in on US dollar (USD) denominated investments. Not only does this represent fresh capital being deployed in cryptoassets, but it is also a sign that investors are slowly regaining their faith in cryptocurrencies. These observations are also mirrored in the increase in trading volumes on cryptocurrency exchanges focused on the Chinese market. https://twitter.com/AntonPagi/status/1107319842686808064 The Chinese market has always been at the core of the cryptocurrency space and undoubtedly it will continue to be so. Even with Bitmain going through a reputational crisis, another big industry player in Canaan is rumored to have closed an impressive funding round. With several positive signs coming from the Far East region, it is worthwhile to monitor the behavior of Chinese markets as an indication of how cryptocurrency prices could move. Experts argue that, if and when the next bull cycle comes, the Chinese market will once again be at the center of it all. What do you think of the impact the Chinese market can have on the cryptocurrency industry? Share your opinion in the comments!