š¢ćNew trends in blockchain: The mysterious correlation between Bitcoin and the balance sheet of the People's Bank of Chinać
Dear readers, today we are going to talk about an interesting phenomenon - the relationship between Bitcoin prices and the balance sheet of the People's Bank of China. According to CoinDesk, analysts have found that over the past eight years, the price of Bitcoin has shown a positive correlation with the size of the balance sheet of the People's Bank of China. What is going on? Let's find out!
First of all, what is a positive correlation? Simply put, when one variable increases, the other variable will also increase. Data shows that the 30-day correlation coefficient between Bitcoin prices and the size of the balance sheet of the People's Bank of China is 0.66, and this correlation coefficient has always been positive except in 2016 and from the end of 2022 to 2023. This means that when the balance sheet of the People's Bank of China expands, the price of Bitcoin is also likely to rise.
Interestingly, the correlation between Bitcoin and the Federal Reserve's balance sheet is negative, with a correlation coefficient of -0.88 within 30 days, which is the lowest level since 2016. This suggests that when the size of the Fed's balance sheet increases, the price of Bitcoin may fall.
So why does the balance sheet of the People's Bank of China have such a big impact on the price of Bitcoin? Recently, the People's Bank of China is considering launching an economic stimulus plan of up to 1 trillion yuan (about 142 billion US dollars) to boost the economy. The news has driven a sharp rise in Asian stock markets, especially the CSI 300 Index.
Analysts believe that this stimulus plan may indirectly benefit Bitcoin because it may increase investment in blockchain and cryptocurrency-related projects. This economic easing policy may drive more capital into the digital asset field, thereby boosting the price of Bitcoin.
Of course, all of this is just the analyst's opinion, and the market is always full of uncertainty. We encourage everyone to share your views and insights in the comments section. What impact do you think the economic stimulus plan of the People's Bank of China will have on Bitcoin? Welcome everyone to speak up and communicate with each other!
Overall, the positive correlation between the price of Bitcoin and the balance sheet of the People's Bank of China provides us with a new perspective to understand the complexity of the cryptocurrency market.We still need to continue to pay attention to and explore the future market trend.
š¢ Dear readers, what do you think of this phenomenon? Come to the comment section and discuss with us!
