Bitcoin (BTC) began to pare its weekly gains early Tuesday, falling to $63,000 after hitting a near one-month high of $64,700. The correction came as China announced new stimulus measures to revive its slowing economy.
On Tuesday morning, the People's Bank of China (PBoC) announced a 50 basis point cut in the reserve requirement ratio for mainland banks and lowered the seven-day reverse refinancing rate to 1.5%. It also reduced the minimum down payment requirement for mortgages to 15%.
Over the past 24 hours, BTC has dropped 1.5%, leading to losses for many other major tokens such as ETH -1.3%, XRP -1%, and SOL -0.5%. However, these corrections usually come after strong bullish periods and are not necessarily related to China's interest rate decisions.
While digital assets did not react strongly to the rate cut, regional stock indices still posted strong gains, suggesting that local traders are focusing on stocks rather than cryptocurrencies. Hong Kongâs Hang Seng Index rose 3.2%, while the Shanghai Composite Index rose 2.3%. The policy package is expected to weaken the yuan somewhat, with the USD-CNY exchange rate rising to reflect the PBoCâs easing measures, although medium-term factors point to a gradual increase in the yuan, according to Lynn Song, chief economist at ING in Greater China.
In another development, QCP Capital in Singapore said that the possibility of US Democrat Kamala Harris becoming the next president may not be as pessimistic as the market predicted.
âHarrisâ victory may not be as pessimistic as many think. She has shown support for the cryptocurrency sector in recent statements, emphasizing that if elected, the government will encourage innovative technologies such as AI and digital assets, while protecting consumers and investors.â
