Cryptocurrencies
‘Panic Buying’ of Chinese Stocks Weighs on Crypto’s Most-Traded Token
- USDT stablecoin has been trading at a discount to dollar, yuan
- Retail, institutional investors seen moving to Chinese stocks
Tether’s USDT has been trading at a discount at times relative to the dollar since the end of September.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
One of the best measures for gauging demand for cryptocurrencies suggests that some Chinese investors are shifting away from digital assets and back to the nation’s surging stock market.
While China banned crypto trading in 2021, many mainland residents have continued to use overseas accounts and exchanges to buy and sell digital currencies, in part to avoid capital controls and move assets offshore.