Bitcoin Tops $97,000 As China Unleashes $138 Billion Stimulus Boost

Bitcoin surged past $97,000 on Wednesday before settling around $96,000, as investors responded to China’s aggressive economic stimulus and growing uncertainty surrounding U.S. Federal Reserve policy.
China’s Liquidity Injection
The People’s Bank of China (PBOC) unveiled a sweeping stimulus package that includes:
A 0.5 percentage point cut to the reserve requirement ratio (RRR), set to release about 1 trillion yuan ($138 billion) in long-term liquidity.
A 10 basis point reduction in the seven-day reverse repurchase rate, from 1.5% to 1.4%.
Additional support tools including 500 billion yuan in re-lending for elderly care and consumption, mortgage rate cuts, and auto financing support.
These measures aim to stabilize China’s slowing economy and boost consumer spending. The announcement followed signs of weakening factory output and mounting deflationary pressures.
U.S. Trade Talks and Federal Reserve Moves
The timing of China’s stimulus came just ahead of planned trade negotiations between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. The meeting, set to take place in Switzerland, marks the first high-level dialogue since the U.S. raised tariffs on Chinese imports to 145%.
“We don’t want to decouple; we want fair trade,” Bessent said, underlining the importance of restoring balance in U.S.-China economic ties.
At the same time, the Federal Reserve’s recent financial maneuvers have raised eyebrows. The Fed quietly purchased $34.8 billion in Treasury securities over two days—$14.8 billion in 10-year notes and $20 billion in 3-year notes—without a formal announcement. Analysts interpret this as a subtle form of liquidity injection and a possible signal of a return to quantitative easing (QE).
Bitcoin Reacts to Global Monetary Shifts
Bitcoin’s upward movement mirrors broader optimism in the markets. S&P 500 futures jumped over 1% following China’s stimulus news, helping propel Bitcoin past the $97,000 mark before pulling back slightly. As of this writing, Bitcoin is trading just under $97,000, with a 24-hour gain of more than 2%.
Former BitMEX CEO Arthur Hayes noted that the Fed’s quiet liquidity moves are bullish for cryptocurrencies, predicting Bitcoin could reach $250,000 by the end of 2025 if full QE resumes.
As global markets digest China’s stimulus measures, pending U.S.-China trade talks, and potential shifts in Federal Reserve policy, Bitcoin continues to reflect investor sentiment on monetary liquidity. While volatility remains, macroeconomic catalysts are clearly driving renewed momentum in crypto markets.