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Reports from the US Securities and Exchange Commission (SEC) showed that Elon Musk became the owner of a huge stake in Twitter. The share of 9.2% accumulated by a well-known entrepreneur makes it possible to influence the policy of the social network, which is of great importance for the crypto industry.
Dogecoin was the main beneficiary of this news, as was Bitcoin used as a Twitter donation, but in the not-too-distant future, SEC reports could reveal much more upside potential for the cryptocurrency market.
We are talking about the decision of the PRC authorities to allow international auditors to audit Chinese companies. The largest Chinese corporations were, until recently, the only ones who were not subject to the US share law.
Chinese law prohibits auditing national firms by foreign auditors, and the White House turned a blind eye to this for a long time, even after Chinese companies were convicted of falsifying financial statistics. Everything changed with the advent of Donald Trump, who threatened to delist shares of Chinese companies from US exchanges.
China’s consent to the audit raised the Hong Kong stock index to a maximum. The Chinese exchanges were closed for a holiday yesterday, so a wave of buying will cover them today. Bitcoin will definitely follow this move for two reasons.
Firstly, BTC correlates with the stock market, and secondly, the reports of Chinese companies can reveal the level of their proxy investments in cryptocurrencies. We are talking about the purchase of shares of crypto trusts secured by Bitcoin and altcoins.
This information will become public after the filing of the first reports with the SEC and could cause a boom in the cryptocurrency market if the proxy investments of Chinese companies exceed analysts’ expectations. The ban on digital assets is only valid within the PRC; at the international level, business is pursuing a more independent investment policy.
Unfortunately, the Chinese factor and Elon Musk’s twitter share could support the cryptocurrency market “one day”. Tomorrow the Minutes of the FRS are released, whose information about the results of voting and the prospects for an increase in interest rates that can bring down financial markets.
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