Crypto Market Surges as China Stimulates Economy with Debt Ceiling Hike
The crypto market is buzzing with renewed hope following China’s latest effort to introduce major economic stimulus measures. China recently announced raising its debt ceiling, and that may have jolted the global crypto market back to life. That is, after putting up what might be called a lacklustre display over the past few days. Bitcoin (BTC) led the rally, gaining over 3% and seen trading at $62,700 with a market cap of $1.239 trillion. The gains follow a week of volatility that saw the flagship cryptocurrency dip below the $60,000 mark due to rising U.S. inflation data. By deciding to increase its debt issuance, however, China may have just injected more liquidity into the global markets. This move appears to be driving the new optimism that is evident among investors. For China, its decision borders on the need of the government to boost economic growth and offer support to various sectors, including low-income citizens and the struggling property market. Bitcoin Whales and Altcoins Join the Rally As the recent surge in Bitcoin’s price suggests, there is an ongoing accumulation from large investors, otherwise known as whales. Since March, whales have added 1.5 million Bitcoins to their holdings, representing about 7% of the total supply. In addition to that, institutional interest is also currently on the high side, with Bitcoin exchange-traded funds (ETFs) now controlling more than 5% of the total supply. All these may be contributing to Bitcoin’s recent surge. However, Bitcoin is not the only beneficiary of China’s effort to boost the economy. Altcoins are also on hand and actively partaking in the market rally. Ethereum (ETH) has gained 1.65%, while Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) have all posted gains of around 3%. Analysts remain strong on the opinion that Bitcoin could reach $90,000 by the end of 2024. That is, considering that the global monetary supply (M2) continues to expand. More Optimism for The Crypto Market China’s finance minister, Lan Foan, has revealed plans for comprehensive debt issuance. However, there are no official statements as to the exact figures.Nonetheless, reports suggest that China may inject up to $283 billion into its economy.
Scroll Lists on Binance, Sparks Debate Over Crypto Centralization Concerns
Ethereum layer-2 project Scroll may have just listed on Binance, a major centralized crypto exchange. While the move signals the project’s readiness for growth, it has also caught the attention of critics, many of whom believe that this may jeopardize Scroll’s core principle — decentralization. The resulting debate from the Friday announcement has seen some members of the crypto community praising Scroll’s listing as an opportunity for it to expand its user base. More so, in emerging markets. For others, partnering with a centralized exchange (CEX) like Binance could see the project lose its core values later on. Scroll Binance Partnership: Strategic Growth or Compromising Decentralization? One of the most vocal critics of Scroll’s latest move is an X user identified as Zeng Jiajun. Jiajun likened the move as being typical to “bending the knee” to a centralized exchange. The user noted that Scroll may find it difficult to balance decentralization with the growth opportunities that Binance will offer. According to Jiajun, this partnership may end up compromising the project’s long-term vision. Meanwhile, Scroll co-founder Ye Zhang has already defended the decision. Zhang explained that the project’s latest move aligns with the broader strategy to expand its ecosystem and reach new markets. According to Zhang, the partnership will make it easier for users to transfer funds in and out of the Scroll network, thanks to Binance’s on-ramp and off-ramp services. The co-founder also dismissed the idea that Scroll was “kneeling” to a CEX. He merely pointed to the fact that attaining global growth can not be achieved without support from a strong exchange. Despite Zhang’s defense, many others like Jiajun remain unconvinced. They argue that Scroll could have taken another route by simply focusing on building enough activity and user engagement to get listed organically. That is, without the need for a partnership. Zhang did acknowledge the criticism but insisted that partnering with Binance would only strengthen Scroll’s ecosystem. He reassured the community that the project’s token distribution and community airdrop would not be affected by the launch pool allocation on Binance.
