PBoC’s liquidity injection and housing market boost could drive asset price growth.
U.S. yield curve widening reflects rising optimism for economic recovery and growth.
Justin Sun predicts China’s economic actions could positively impact the crypto market.
The People’s Bank of China (PBoC) and the US Federal Reserve are adding liquidity to the market, increasing hopes for asset price growth. Crypto markets are likely to benefit from this positive environment as digital economies expect more financial easing.
Alongside the positive outlook, the PBoC has also taken strong measures to address its slowing economy, particularly in its housing and equity markets. On Monday, the PBoC rolled out policies to support the housing sector and increase liquidity in the asset market.
As a result of these proactive measures, the Chinese A50 futures jumped by 8%, with mainland Chinese and Hong Kong indices marking significant gains. A key measure has been a 500 billion RMB swap facility, previously available only to national banks, which now lets non-bank financial institutions purchase Chinese shares.
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