China is making moves that could impact the entire cryptocurrency market. There are reports suggesting that the country is considering launching a strategic Bitcoin reserve and may soon lift its crypto ban. This has created buzz, especially for altcoins tied to Chinese blockchain projects, as they stand to benefit from the country’s growing interest in digital assets. Hashkey CEO recently said, “I think there is the possibility the mainland China government will reconsider their stance towards the crypto and Web3 industry.”
China’s Shift Toward Crypto
China’s push into cryptocurrency seems driven by its desire to compete with the U.S. and strengthen its position globally. As more countries embrace digital currencies, China wants to lead the way in crypto and blockchain technology.
Experts believe that when China lifts its crypto ban, a significant amount of money will flow into Chinese tokens. Analyst Tracer explains, “In a positive scenario, their liquidity will first flow into China-related tokens,” potentially sparking a rally in altcoins connected to Chinese blockchain projects. This presents a great opportunity for investors to get ahead of the curve.
Top Chinese Altcoins to Watch
Aethir (ATH) – A project focused on building decentralized GPU computing infrastructure. With a market cap of $275.77M, it’s one to watch as liquidity pours into China-related tokens.
Zilliqa (ZIL) – A high-speed blockchain designed for scalability, Zilliqa is ready to take off when China’s crypto ban is lifted. It has a market cap of $257.15M and is set to benefit from increased demand.
Neo (NEO) – Known as the “Chinese Ethereum,” Neo is one of the country’s most established blockchains. With a market cap of $578.91M, Neo could see growth as China’s crypto industry expands.
Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to see how Bitcoin (BTC) is faring against public companies, precious metals, and ETFs (exchange-traded funds) on metrics of total assets by market capitalization. The pioneer crypto is proving formidable, taking the stage as a tech stock proxy to ‘dynamic hedge’ against equities and US Treasury risk.
Bitcoin Surpassed Google in Market Cap
Amidst renewed optimism, Bitcoin has surpassed Google, effectively joining the top five assets on market cap metrics.
According to data on companiesmarketcap.com, which tracks over 10,436 firms, Bitcoin is now the fifth most valuable asset after GOLD, Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA). As of this writing, it boasts a market cap of $1.86 trillion.
This growth comes as Bitcoin progressively gains attention as a hedge against traditional finance (TradFi) and US Treasury risk, which aligns with the most recent US Crypto News publication. As BeInCrypto reported, experts say Bitcoin’s number one purpose in a portfolio is to hedge against risks to the existing financial system.
In contrast, Gold is losing appeal after recently establishing a new all-time high (ATH). While President Trump’s tariffs catapulted Gold to new heights, there appears to be a capital rotation as investors’ appetite for risk grows.
“Bitcoin has surged past the prior $88,800 technical ceiling, clearing the psychological $90,000 mark to trade at an eye-watering $93,500. Meanwhile, Gold has slid 6 percent, reflecting a renewed appetite for risk and a clear rotation into digital assets,” QCP Capital analysts said.
According to analysts, institutions are no longer testing the waters of crypto. Instead, they are diving in headfirst. Based on this outlook, BeInCrypto contacted Standard Chartered Head of Digital Assets Research Geoff Kendrick, who forecasted a new ATH for Bitcoin price.
Standard Chartered Reiterates Next Bitcoin ATH
According to Kendrick, the increasing 10-year US Treasury term premium, now at a 12-year high, correlates with an increase in Bitcoin price. The term premium is the additional yield investors demand to hold a long-term bond instead of a series of shorter-term bonds.
“While correlations vary over time, the relationship between Bitcoin and the term premium is pretty solid, especially since the start of 2024. This relationship shows that Bitcoin has lagged the term premium increase in recent weeks,” Kendrick told BeInCrypto.
According to the analyst, this lag likely reflects the previous narrative that tariffs are hurting tech stocks and Bitcoin trading, such as Mag7 stocks.
“This could be what is needed for the next all-time high, and on that, I reiterate my current forecasts for Bitcoin, of 200k end-2025 and 500k end-2028,” he added.
As Bitcoin acts as a dynamic hedge, it remains to be seen whether it can flip Nvidia this quarter. Nevertheless, Kendrick does not rule it out, acknowledging that dominant narratives change and Bitcoin serves several purposes in portfolios.
