China Stimulus Could Spark Altcoin Rally as Economic Data Weakens
The post China Stimulus Could Spark Altcoin Rally as Economic Data Weakens appeared on BitcoinEthereumNews.com. The cryptocurrency market faces a critical juncture as the People’s Bank of China (PBOC) considers stimulus measures in response to slowing economic activity. Analysts suggest that if Beijing injects liquidity into the system, altcoins could experience a significant rally, potentially surpassing previous all-time highs. China Stimulus Possible in Next Month While headlines often focus on the US Federal Reserve, China’s monetary policy exerts an equally crucial influence on global risk assets, including cryptocurrencies. A March 2025 21Shares report highlighted a 94% correlation between Bitcoin’s price and global liquidity, surpassing the S&P 500 and gold. This correlation underscores the significance of central bank policies in shaping investor sentiment toward crypto markets. According to Porkopolis Economics, the U.S. M0 monetary base currently stands at $5.8 trillion, followed by $5.4 trillion in the eurozone, $5.2 trillion in China, and $4.4 trillion in Japan. Given that China accounts for nearly 19.5% of global GDP, the PBOC’s policy decisions carry weighty implications for international capital flows, even when the Fed dominates market attention. Top monetary assets, USD. Source: Porkopolis Economics China’s economic data in July 2025 highlighted several areas of weakness. Retail sales fell 0.1% month-on-month, while fixed-asset investment declined 5.3% year-on-year, the steepest contraction since March 2020, according to estimates from Goldman Sachs. Industrial production, meanwhile, inched up 0.4%, indicating limited growth momentum. Unemployment also showed signs of stress, with the survey-based urban jobless rate climbing to 5.2% in July, up from 5.0% in June. Bloomberg noted that the PBOC could introduce stimulus measures “as soon as September,” while economists at Nomura and Commerzbank echoed the expectation of imminent support policies. Central banks typically deploy stimulus through interest rate cuts or special financing conditions, effectively expanding the money supply. Such interventions historically boost risk assets, including stocks and cryptocurrencies, by making liquidity more accessible and reducing…
The post China Stimulus Could Spark Altcoin Rally as Economic Data Weakens appeared on BitcoinEthereumNews.com.
The cryptocurrency market faces a critical juncture as the People’s Bank of China (PBOC) considers stimulus measures in response to slowing economic activity. Analysts suggest that if Beijing injects liquidity into the system, altcoins could experience a significant rally, potentially surpassing previous all-time highs. China Stimulus Possible in Next Month While headlines often focus on the US Federal Reserve, China’s monetary policy exerts an equally crucial influence on global risk assets, including cryptocurrencies. A March 2025 21Shares report highlighted a 94% correlation between Bitcoin’s price and global liquidity, surpassing the S&P 500 and gold. This correlation underscores the significance of central bank policies in shaping investor sentiment toward crypto markets. According to Porkopolis Economics, the U.S. M0 monetary base currently stands at $5.8 trillion, followed by $5.4 trillion in the eurozone, $5.2 trillion in China, and $4.4 trillion in Japan. Given that China accounts for nearly 19.5% of global GDP, the PBOC’s policy decisions carry weighty implications for international capital flows, even when the Fed dominates market attention. Top monetary assets, USD. Source: Porkopolis Economics China’s economic data in July 2025 highlighted several areas of weakness. Retail sales fell 0.1% month-on-month, while fixed-asset investment declined 5.3% year-on-year, the steepest contraction since March 2020, according to estimates from Goldman Sachs. Industrial production, meanwhile, inched up 0.4%, indicating limited growth momentum. Unemployment also showed signs of stress, with the survey-based urban jobless rate climbing to 5.2% in July, up from 5.0% in June. Bloomberg noted that the PBOC could introduce stimulus measures “as soon as September,” while economists at Nomura and Commerzbank echoed the expectation of imminent support policies. Central banks typically deploy stimulus through interest rate cuts or special financing conditions, effectively expanding the money supply. Such interventions historically boost risk assets, including stocks and cryptocurrencies, by making liquidity more accessible and reducing…
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