Summary: The article explains the crypto China narrative - the notion that crypto will rally due to liquidity from China - analyzing its origins, mechanisms, key players, associated coins, and whether it is a real trend.
What the crypto China narrative is:
- Notion that crypto will rally due to liquidity flowing in from China.
- Originated from a whale on Crypto Twitter.
How the narrative works:
- China ending COVID lockdowns brings liquidity like US stimmies.
- Hong Kong regulating crypto enables flows from China.
- Narrative heightened by game theory and network effects.
Coins associated with the narrative:
- Filecoin, Ontology, NEO, VeChain, etc.
- Pumped already on narrative, unclear if more upside.
Accounts to follow for updates:
- Whales like GCR, macro analysts like TedTalksMacro.
Outlook on the narrative:
- Depends on China's liquidity injections.
- Unclear if strong correlation with Chinese markets.
- Narrative may have topped already for most coins.