One of the first things that people have failed to recognize about the crypto market is that it has been in a state of steady decline for years now. This steady decline has many reasons, with some of the more recent reasons for its significant decline have simply made the decline much faster.
In fact, one could make an argument that China’s abrupt exit from the crypto market, is what started this downward trend. China was an integral part of the crypt ecosystem, and suddenly cutting itself off has led to a range of issues that the market has yet to recover from.
Getting over China
However, it would seem that China’s separation from the crypto market did not work for them as planned. Instead of crippling the market like they were hoping, it instead led to the market becoming very dependent on a single country, which could lead to problems of its own.
By being so dependent on a single country for crypto mining, the entire market very much fell off its course and essentially went into full damage control.
The following month for the crypto market was incredibly tense, as the entire market was struggling to regain its footing. Companies that were running for years shut down in an instant and tried to move to other countries.
And as all of these companies eventually started to resume their operations, there was an even bigger outcry over how the rest of the market will cope with the loss. In the end, before the rise of inflation, the market eventually did recover, it also managed to thrive for some time.
Using Hong Kong to Renter the Crypto Market
The worst thing that could have possibly happened for China after leaving the crypto market was to try and come back. While China’s return will be good news for the rest of the market, it will also be difficult for most companies to trust the country again.
Therefore, if China really does want to make its way back into the crypto market, it will need to do so with the help of Hong Kong.
According to various analysts, Hong Kong remains one of the biggest proxies for china that allows them to communicate with the rest of the world.
A Sign of Better Things to Come
The important thing about china is that by introducing a new bill in Hong Kong that will focus exclusively on regulating cryptocurrencies, China is showing an interest to reenter the market. And with time, it just might come back and help stabilize the market. If they do their part right, the market could experience a major bull run.