- The PBOC reduces the rate and cuts the mortgage cost.
- A trade talks between the United States and China have been booked.
- The market is waiting for the FOMC guidelines for policy shifts.
Bitcoin has exceeded $ 97,000 before settling more than $ 96,000 on Wednesday. The joining of global currencies stimulated the market before the policy announcement of the Federal Reserve.
Cryptocurrency’s rally was a few hours after China injected $ 130 billion into the economy through a wide range of stimulating packages, and the US Central Bank made a total of $ 34 billion in financial purchases.
Combined with the new China-US trade negotiations, this development has made a speculation on returning to quantitative easing, moving global investor feelings to dangerous assets such as encryption.
China inject liquidity and cut interest rates
In a press conference hosted by the State Council, Pan Gongsheng Governor Pan Gongsheng announced that he had relied 0.5 percentage points cut in the preliminary requirements (RRR) and released a long -term liquidity of $ 1 trillion ($ 13.8 billion).
The bill has reduced 10 -base points reduction and reverse repository rate from 1.5%to 1.4%with a major policy interest rate.
This stimulating package also included 500 billion yuan finances to support the elderly and domestic consumption.
In addition, mortgage interest rates have been summarized and preliminary requirements for auto financial companies have been alleviated.
This stage is intended to respond to weakening domestic demand and to support the slow slowing real estate sector.
The announcement was important. The United States came to confirm that the Finance Minister Scott Becent would meet Lifeng for China’s vice president in Switzerland on May 10 and 11.
The upcoming summit recorded its first official trade negotiations after President Trump raised his tariffs on China’s imports to 145%.
Bitcoin and S & P 500 respond to global easing signals.
The market immediately responded to the double headline of stimuli and diplomacy.
According to Kobeissi Letter, S & P 500 FutureS has risen more than 1%, while Bitcoin has surpassed more than $ 97,000.
Cryptocurrency’s profits have gained a lot of success that day, with BTC increased by 2.93% to $ 96,911 for the last 24 hours to $ 96,911.
Source: Coinmarketcap
Gold is also at a record high of $ 3,437.60 per ounce, and it is 28.84% year -on -year.
Investors in the precious metal are suggesting positions for uncertainty before the FOMC (Federal Reserve’s FOMC) statement.
Fed’s bond purchase causes QE guessing
In addition to market propulsion, Federal Reserve quietly purchased $ 34.8 billion from the Ministry of Finance Securities for two days. On May 5th, May 6th, and May 6, we bought $ 14.8 billion from $ 14.8 billion in bonds for 10 years.
This movement was made without a formal announcement of policy shifts.
The size and speed of the purchase have been speculated that the Fed is testing water to return water to quantitative easing.
This is followed by the prudent guidelines of Jerome Powell, who maintains that further strengthening or reducing the balance table is possible depending on the inflation trend.
Arthur Hayes, former Bitmex CEO, suggested that in recent columns, these measures can be officially resumed by the end of 2025 that Bitcoin can be carried out at $ 250,000.
But other analysts are generally skeptical, pointing out that there is no systematic financial stress to justify such actions.
The Fed’s Eyes waiting for clarity
Today, the FOMC meeting will closely monitor the Signal of the Fed’s policy.
Dovish Pivot helps Bitcoin to provide more than $ 97,000, while more attractive tones can increase volatility.
Investors are prudent but keeping their boundaries, and the central bank coordination and renewed trade diplomacy are alternately suggested in a deeper macro.
Whether Bitcoin maintains an upward trajectory depends on what message the Fed sends for the next few hours.