Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.
Since late September, BTC has held largely flat amid the stimulus-led 20% surge in the Chinese stocks.China's battered stock market has experienced a resurgence since late powered by the barrage of stimulus by Beijing.
"The current surge in Chinese stocks, driven by the stimulus package and investor activity during the national holiday week, represents a calculated risk-reward trade for savvy investors. Even with a 3-5% cost to convert USDT into equities, the potential upside of 50-70% makes this a strategic move," Danny Chong, co-founder of multi-staking protocol and co-founder of Digital Assets Association Singapore, told CoinDesk in an email.
Since Sept. 24, the Shanghai Composite Index has jumped over 20%, reaching its highest since May 2023. The Hang Seng China Enterprises Index, which constitutes Chinese stocks listed in Hong Kong, has jumped over 25%, according to data source TradingView. "This shift is likely to be temporary. Once the peak of the recent upward move in Chinese equities stabilizes, we can expect to see a redeployment of capital back into crypto. This is a prime example of the maturing mindset of investors who are willing to move across asset classes to optimize their returns," Chong said.
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