Renowned crypto-analyst and author Marcel Pechman, at Cointelegraph, presents an in-depth analysis of the potential influence China’s economic instability and Turkey’s recent rise in interest rates could have on the global cryptocurrency sphere.

In the most recent installment of Cointelegraph’s Macro Markets, Pechman provides insightful commentary about Turkey’s dramatic increment of interest rates, a strategy aimed at combating inflation that could potentially pave the way for a substantial influx of new crypto investors. Additionally, he scrutinizes how China’s impending economic crisis might reverberate through Bitcoin BTC $30,456 and the wider crypto market.

In a significant anti-inflationary move, Turkey’s central bank has jacked up the interest rates from 6.5% to a steep 15%. This follows the lira’s drastic depreciation of 80% against the USD over the past five years.

Pechman emphasizes that the dominance of the U.S. dollar as the world’s reserve currency is not necessarily the main concern. Taking cues from Turkey and Argentina’s shocking inflation rates of 70% in 2022, he points out that decentralized cryptocurrencies might be the last resort for the hundreds of millions, if not billions, who lack access to foreign currency saving and transaction options.

In the next segment, Pechman delves into how China’s economic downturn could impact Bitcoin and potentially spur demand for digital currencies, in light of China’s central bank digital currency initiative. Amidst the prevalent consumer and entrepreneur pessimism and only moderate policy easing, Goldman Sachs economists have cut their forecast for China’s GDP growth to 5.4%.

Further demonstrating the correlation between Chinese economy and Bitcoin, Pechman uses the iShares MSCI China exchange-traded fund as an effective indicator of Bitcoin’s price fluctuations. If the Chinese stock market declines, he suggests, it’s plausible that cryptocurrency prices could follow suit.

In conclusion, Pechman presents an optimistic view on crypto adoption amidst economic slowdown, like in China’s current scenario, citing the possible use of stimulus checks for purchasing cryptocurrencies.

The Macro Markets series is exclusively featured on the new Cointelegraph Markets & Research YouTube channel, so don’t forget to like, subscribe, and stay updated with the latest happenings!