As the Chinese economy is struggling, local investors are looking for opportunities to buy cryptocurrencies as traditional store-of-value instruments perform poorly, Reuters has reported.
A senior financial sector manager in Shanghai has told the publication that he started shifting some money into digital assets earlier this year, when he realized that the Chinese stock market was "going downhill."
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He has added:
"Bitcoin is a safe haven, like gold."
Although China introduced a ban on crypto trading in the country in 2021, this has not deterred many investors.
According to the Wall Street Journal, the underground cryptocurrency market enjoys great prosperity in China. Investors use various means to avoid transactions, including the use of VPN services, social media contacts and face-to-face transactions.