The focus of global financial markets is not only on the United States, but also on the major fiscal stimulus measures launched by China. According to the latest report from Reuters, China may issue further treasury bonds, totaling $284 billion. This means injecting funds into the economy through large-scale debt financing, or more directly, by expanding the money supply. Half of the funds will be used to stimulate domestic consumption, while the other half will be used to ease the debt pressure of local governments. China's stock market has seen a significant rise recently.
In any case, this series of measures taken by China has increased liquidity in the global market. This is actually expected, especially after the Fed's interest rate cut, the more passive China has more room for operation. Considering the growth of global liquidity, we may wonder why Bitcoin has not benefited significantly from it. In fact, although the price of Bitcoin has shown a certain upward trend in the past few weeks, it is still far from its historical high. And global liquidity usually takes 4-6 weeks to be truly transmitted to asset prices. At present, market sentiment still seems to be cautious, especially in the face of short-term economic fluctuations, retail investors have not yet poured in. So Bitcoin needs to get closer to $70,000 or even set a new high as soon as possible in the fourth quarter before more new funds will flow into the market. Those inexperienced investors, unlike you and me, will not be more excited to buy at the low point of the bear market. They will only feel extremely scared. Instead, they are more willing to enter the market when the price breaks through new highs and continues to rise.
