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Golden Week: China Sees Boost in Consumption

Published

3 Monaten ago

Oktober 12, 2020

The growth trend with respect to consumption in the People’s Republic of China has skyrocketed following its week-long holidays.

Per the report released by the Ministry of Commerce of the government of China, the consumption during the holidays was fueled by increased tourist activities across the country.

Per the ministry, average sales of consumer foods as well as beverages rose by 4.9% when compared with the figures from the Golden week holiday in 2019. The country generated about 1.6 trillion yuan from these sales in the 7-day holidays which spanned from the first of October through the 8th. Besides retail consumption. Tourism revenue across China hit 466.56 billion yuan (69.7 billion US dollars), 69.9 percent of that in the same period in 2019, according to the Ministry of Culture and Tourism.

To consolidate the growth in China’s consumption trends, the Hainan province also released data showing that duty-free sales grew by 150% compared to the same period last year. Hainan’s local customs said that tourist visits on the Island surged by 40 percent to hit a record 146,800.

The consumption growth trend in China is consolidated across the board during the entire holiday as sales on popular e-commerce sites including JD.com, and Alibaba’s TMall Global amongst others revealed. Sales on the latter’s platform rose by 79 percent during the holidays.

The Chinese government through the ministry of commerce has adduced the performance seen in the company’s economy to a strategic effort to keep the prices of essential goods stable. As noted by the ministry, the prices of such essential food items including meat, flour, pork, and others reduced to boost people’s purchasing power.

China and the Masses Consumption Suggests Recovering Economy

Several analysts have suggested that the rate of consumption in China as seen during the holidays is an indication of how China’s economy is on a positive recovery path. As reported by the Global Times, CNN noted that the country’s share of global Gross Domestic Product will likely increase by 17.5% up from 1.1 citing data from the World Bank.

Larry Hu, chief China economist at Macquarie said on Friday that “It’s clear that consumption, especially service consumption, is on the mend.” Hu also went on to express optimism that the service sector is complimenting infrastructure and exports and real estate which originally is responsible for driving about 50 percent of the economy’s growth.

With the coronavirus disease beginning its menace in China almost a year ago, the country has obviously fared relatively well compared to other countries both in containing the virus and in channeling the country’s economy towards a path of full recovery. Despite the trade wars with the United States whose negotiations are somewhat resuming, Foreign buyers including those from the U.S. favor Chinese products, contributing more to the perceived growth in the economy.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

22 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

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eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

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1 Stunde ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

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Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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