Central banks typically stimulate economic growth by lowering interest rates or providing special financing conditions, thereby increasing the supply of money flow.
The move favors high-risk assets such as stocks and crypto.
Crypto investors are now assessing whether the next move by the Chinese central bank to increase liquidity could support altcoins’ surge past all-time highs.
According to 21Shares March 2025, there is a strong correlation of 94% between the price of Bitcoin, currently worth $115,491, global liquidity levels surpass the S&P 500 and gold.
With China’s monetary base currently worth $5.2 trillion, or 19.5% of global GDP, the policy report remains important even though the US Federal Reserve’s (Fed) assessment often takes center stage.
Bloomberg Economics analysts Chang Shu and Eric Zhu expect the People’s Bank of China (PBOC) to introduce stimulus as early as September.
In the US, a University of Michigan poll published on Friday showed 60% of people expect the unemployment rate to rise in the next year, a sentiment last recorded during the 2008–09 financial crisis.
However, market economic data still shows resilience.
