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China: The Crypto Catalyst
China's relatively low liquidity injections compared to other major economies position it as a significant player in the crypto market's future. The potential for stimulative policies in China could serve as a major tailwind for cryptocurrencies, particularly as a substantial portion of spot trading volume originates from Southeast Asia, with South Korea being a major player. Historically, easing monetary policies in China have led individuals to convert their wealth into Bitcoin and Tether, indicating a correlation between such policies and increased crypto activity. However, actual outflows appear more pronounced in Tether than Bitcoin, as physical cash transfers via suitcases are common for moving wealth across borders into Hong Kong. The impact of future Chinese policies on crypto will need careful observation.