China’s New Stimulus Package Could Boost Crypto Prices

• The Chinese government has scheduled a meeting to update the stimulus package to boost economic growth.
• Analysts and investors expect that policy easing will have a positive impact on the crypto market.
• The United States will also adopt similar policies that envision strengthening the economy. 

China’s massive new stimulus package could be a major catalyst for the crypto market. With officials set to announce further details today, investors are watching closely to see how these measures might impact liquidity and drive economic growth.

Five senior officials from the National Development and Reform Commission, including Chairman Zheng Shanjie, will hold a press briefing today. This follows the recent announcement of a massive stimulus package, which included interest rate cuts, increased liquidity, and $340 billion dedicated to supporting the stock market.

Thinking Crypto host Tony Edward posted on X today, sharing his take on China’s stimulus measures. He used the popular internet meme “Money printer go Brrrrrrrrrr,” which refers to central banks printing more money to inject liquidity into the economy. With this meme, Edward highlighted that the Chinese government’s move will significantly boost economic growth and market liquidity.

Let me translate – “Money printer go Brrrrrrrrrr”. China about to pump global liquidity which will pump your assets. U.S. will join money printing party soon. https://t.co/hlkfy2BaLD

— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1)
October 8, 2024

Edward said that the Chinese government’s “money printing” would significantly increase the value of crypto assets. He predicted that the United States would also take similar steps to strengthen its economy.

At the end of September, China announced strategic policies, described as a “policy bazooka,” to help its economy. The stimulus policy included measures such as a mortgage rate cut, a Reserve Requirement Ratio (RRR) cut, stock market support, and more. It shows that the country is serious about fighting deflationary pressures and achieving its economic growth targets.

Read also: Justin Sun Thinks China Will Spark a Crypto Bull Run – Here’s Why

Many believe China’s plan will be a game-changer for the crypto industry. Crypto enthusiasts and investors are interested in the move’s potential benefits for the crypto industry. Su Zhu, the founder of the now-closed crypto hedge fund Three Arrows Capital, said on X, “China stimulus cycle begins.” His post suggests the development’s possible influence on the crypto market.

The Chinese Central Bank’s policy easing has often been a bullish sign for cryptocurrencies, especially Bitcoin. According to research from Lyn Alden, China’s policy is likely to inject liquidity, which is highly correlated to Bitcoin.

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