Forget The Fed—China Could Be About To Drop A $420 Billion Bitcoin And Crypto Price Bombshell

BitcoinBitcoin +2.5% has soared this year as traders ramp up bets that the Federal Reserve is about to declare victory in its war on inflation despite fears mounting over the U.S.'s spiraling $35 trillion debt pile.

The bitcoin price has climbed from around $40,000 at the beginning of the year, past its peak of $70,000 before falling back to around $60,000—though Apple has quietly primed the market for an iPhone earthquake.

Now, as some crypto experts bet China could be about to open up its digital doors to crypto, economists are calling on China to begin monetary stimulus to bolster the country’s flagging economy.

China could increase this year's special sovereign bonds to $420 billion, Zhang Ming, deputy director of government think tank the Institute of Finance and Banking at the Chinese Academy of Social Sciences, told Bloomberg, after China's economic growth has fallen short of official expectations in the aftermath of strick Covid-era lockdowns.

Earlier this week, Beijing-based analyst Zichen Wang polled economists who called for increased government spending and found consensus that "aids could at least go to low-income groups."

Last week, Arthur Hayes, a cofounder of bitcoin and crypto derivatives pioneer BitMex who went on to set up the Maelstrom investment fund, wrote in a blog post that he expects China to next year "finally unleash its long-awaited bazooka fiscal stimulus," predicting the China-America "crypto bull market shall be glorious."