- Justin Sun hinted that China might soon be unbanning cryptocurrencies.
- A similar hint was given by Mike Novogratz in July in a now-deleted X post.
- The unbanning might open the doors for increased capital inflow in the crypto markets.
Justin Sun, the founder of the Tron (TRX) blockchain, recently took to social media platform X (previously known as Twitter), to state that mainland China will soon unban digital assets, following the footsteps of Hong Kong, a special administration region in China which has attracted many crypto firms owing to its pro-crypto policies.
As per the X post, Sun asked his followers which meme coin would best represent this event. The community responded with suggestions like Chinese Pepe and Tron Cat. The crypto entrepreneur recently ventured into the meme coin space with the launch of Sunpump, the first meme coin platform on the Tron decentralized autonomous organization (DAO).
The Thinking Crypto podcast on YouTube joined the conversation, predicting a bullish outlook for the digital asset space in the second half of the year. Host Tony Edward pointed to reports of China potentially unbanning cryptocurrencies, growing political and Wall Street adoption of digital assets, and the rising global M2 money supply as positive signs for the crypto market.
Earlier in July, Galaxy Digital CEO Mike Novogratz also said in a now-deleted X post that China is planning to unban cryptocurrencies. Edward believes that the manufacturing powerhouse unbanning crypto would unlock significant capital flows into the crypto markets as the country was a leader in the crypto space before the ban.
Edward contends that China unbanning cryptocurrencies, combined with the adoption of cryptocurrency by political figures like Republican presidential candidate Donald Trump and financial institutions like Morgan Stanley and Goldman Sachs, could trigger a new crypto market bull run.
On the other hand, the rising global M2 money supply, a measure of the money circulating in the economy, is also bullish for the crypto space, pointed out Edward. As per a report by Barron’s, the M2 money supply rose 0.6% from a year ago in April, suggesting that the Federal Reserve is gradually improving economic conditions in the United States.
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