Hong Kong is set to officially make crypto purchasing, selling and trading entirely legal for all its residents effective June 1, 2023 according to reports. The announcement has fueled a rally in Chinese coins and the “China narrative” has gathered steam in the past week.
Crypto analysts believe the China coin narrative is here to stay and holders can expect further gains from Filecoin (FIL), NEO, Conflux (CFX), VeChain (VET) and Qtum (QTUM).
Hong Kong’s recent announcement for legalizing crypto trading for its residents fueled a bullish sentiment in the crypto community giving rise to the “China” narrative. The narrative gathered steam over the past few weeks as analysts and crypto influencers tweeted about it and shared watchlists of Chinese coins for traders.
Chinese coins in the top 100 cryptocurrencies by market cap, Filecoin (FIL), VeChain (VET), Neo (NEO) and Conflux (CFX) have yielded 76.45%, 26.54%, 29.50% and 310.15% gains for holders respectively.
The China narrative is the key factor driving the massive price rallies in these tokens, in addition to alpha from Chinese content creators and developments in the respective crypto projects.
Crypto market participants are big on narratives in 2023, after the Artificial Intelligence narrative inspired by ChatGPT, and the Metaverse narrative inspired by Meta’s earnings report and its dedication to building crypto’s metaverse, the China narrative has become increasingly popular among traders.
