It's nothing to be glad about, if I am to be honest, but it seems like the current events in China are beginning to lay the foundation for a new bullish rally. I mean, it seems weird that I would wrap these statements in negativity, but we are in the brink of global emergency, and it's beginning to show. https://assets.bwbx.io/images/users/iqjWHBFdfxIU/i3_JHjDc4nMQ/v1/1000x-1.jpg img src

Defaulting Banks in China

I'm reading tweets about this, but also some videos on the subject. There seems to be seas of chinese citizens standing outside banks urging them to open, to give them back their funds. This reminds me very much of similar events in South America more than twenty years ago, events that converted countries like Ecuador into "dolarized Democracies" and please note the air quotes here. We could ask: Why are banks defaulting? But I think we all know the answer. The country is attempting to manage the viral outbreak and there is absolutely no chance that it would not touch GDP as a direct consequence. Less people are buying things, places are going unrented, loans made by banks are being defaulted, hence the Banks are running out of liquidity. Will this trend continue? I think so, I really do. Unless a miracle happens in the next few weeks, a miracle cure that is, to both the viral problem and the economic downturn, there's a strong chance China is headed for a big recession.

Why is this bullish?

Two words: Safe heaven. This is what cryptocurrencies offer us, and more to citizens of a country that are not allowed to have other options on the table. I would not be surprised if this sky rockets BTC in the next week, it very well could. That being said, it's hard to be glad about a Country's peril being the catalyst for markets rallying. MenO Posted via Steemleo