Experts warn that the Chinese economy is starting to deteriorate due to the rejection of crypto software companies.
The Chinese State Council’s decision to take action against Bitcoin mining and other cryptocurrency-related operations at the end of May appears to be beginning to reflect in the country’s economic slowdown.
Bloomberg Intelligence’s Mike McGlone and Senior Commodity Strategist Anthony Scaramucci and hedge fund manager Anthony Scaramucci were among the first to call attention to the situation.
According to Mike, China’s attitude toward the crypto business, notably its rejection of this type of company, could lead to the country’s economic downfall.
“China’s rejection of open-source software crypto-assets may mark a plateau in the country’s economic ascent, we believe,”says Mike McGlone
Anthony Scaramucci, the second, reacted to the current scenario by equating the Chinese government’s regulatory measures and prohibitions to the “Tiananmen Square moment of capitalism,” implying that the country is attempting to acquire control of the country’s corporate leaders.
The website Trustnodes, which published these experts’ views, also noted that the stock prices of well-known Chinese corporations are already falling.
Stocks in TAL Education (TAL) have dropped 54 percent, New Oriental Education & Technology (EDU) has dropped 48 percent, Gaotu Techedu (GOTU) has down 59 percent, and 17 Education & Technology (YQ) has dropped 40 percent.
In terms of country indexes, the Shanghai Index is down -0.7%, the Hang Seng Index is down -1.45%, and the MSCI China Index is down -20% since February.