China’s Economic Moves Spark Buzz Around Potential Bitcoin Rally

NEW YORK, March 6, 2025 — As Bitcoin‘s price fluctuates dramatically, now hovering above $90,000 after previously dipping beneath $80,000, economic analysts are focusing on China’s potential stimulus measures that may further influence the cryptocurrency market.

This price surge comes in the wake of speculations surrounding China’s plans to intensify its economic stimulus which has historically buoyed risk assets like Bitcoin. Arthur Hayes, co-founder of BitMex, cautioned, “Watch out for China.” He predicts a significant shift in financial markets, suggesting Bitcoin could surpass $1 million due to these stimulating actions. He states, “If the dollar supply increases, the People's Bank of China can be ordered to increase the yuan supply to stabilize the dollar-yuan exchange rate.”

Recently, Pan Gongsheng, governor of the People’s Bank of China, indicated that the central bank would consider cutting interest rates and adjusting reserve ratios “at an appropriate time,” according to reports by Reuters. This announcement coincides with escalating trade tensions from U.S. tariffs imposed under former President Donald Trump, driving China toward a more aggressive financial response, including a recently unveiled $1.4 trillion debt package aimed at stabilizing its economy.

According to sources at Nexo, a Bitcoin and cryptocurrency platform, past instances of China’s monetary stimulus in 2015 and 2020 saw excess liquidity spill over into alternative assets, such as Bitcoin. The spokesperson noted, “Such stimulus could have broader implications for global markets, increasing appetite across equities and alternative assets.”

Rumors have emerged online that China may also establish a strategic Bitcoin reserve to rival the United States, spurring conjecture on social media. David Bailey, CEO of BTC Inc, mentioned to X, “China is now working double time to stand up their own strategic bitcoin reserve and has held closed-door meetings on the topic since the election.”

As China considers these critical financial moves, market watchers will closely monitor the implications for Bitcoin and other cryptocurrencies. With an already volatile landscape, any significant policy decisions could lead to a shift in investment strategies, further igniting the debate surrounding the future of digital currencies and their place in a rapidly evolving economic world.