A China indicator that greases risk-taking in stocks and bitcoin is flashing red
China's "credit impulse" is flashing red for risk assets.So far, bitcoin has mostly shrugged it off.
Source: CoinDesk
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DW NOTE
China's credit impulse measures new lending as a percentage of GDP — when it turns negative, liquidity is draining from the world's second-largest economy. Bitcoin has decoupled from this indicator before, but never during a year when global oil supply is forecast to fall by 3.9 million barrels per day and the Strait of Hormuz has been effectively closed for 186 days. If Chinese credit continues contracting while energy costs rise, the question is not whether bitcoin holds, but what basket of assets investors rotate into when both growth and stability look suspect.