China Index Hits 18-Year Low, Signaling Crisis That Could Hit Wall Street and Bitcoin
MacroDigital Finance
China's credit impulse index has fallen to its lowest level since 2008, at 20.84 points, signaling a slowdown in the global economy that could pressure corporate profits and U.S. stock prices, as well as Bitcoin (BTC 77,545.96 U.S. dollars). Historically, major Bitcoin lows have often coincided with a recovery in this index. Albert Edwards, a strategist at Societe Generale, said that overlooking China's monetary tightening could be the biggest investment mistake of the decade. Although Bitcoin surged 25% in August and broke above 80,000 U.S. dollars, its rally has just stalled below that level amid concerns about Fed rate hikes. Two possible scenarios are that Bitcoin may ignore signals from China because the market is driven by U.S. institutions, or it may fall if Wall Street stocks turn down.
