To stimulate China's economy and boost consumption, the People's Bank of China (PBOC) announced at a meeting on December 27 that it will adopt a more accommodative monetary policy, planning to further lower the current benchmark interest rate target of 1.5% in a timely manner in 2025. This is hoped to alleviate the mismatch between credit demand and monetary policy, and stimulate economic activity. The market expects short-term benefits for economic growth, but also anticipates that under the easing policy, the renminbi will tend to depreciate in the medium to long term, with Bitcoin becoming a tool for value preservation.
At the same time, the yields on China's 10-year and 30-year government bonds have reached new lows due to market expectations for a new round of easing policies. Cryptocurrency analysts predict that China's easing policy will become a catalyst for Bitcoin price increases. BitMEX co-founder Arthur Hayes believes that China's interest rate cuts combined with the Federal Reserve's low interest rate policy will drive a 'brilliant' surge in Bitcoin and cryptocurrencies in 2025.
Previously, after the U.S. Fed announced interest rate cuts in September, the price of Bitcoin soared to a peak of $100,000. Hayes emphasized that China's large-scale monetary easing policy in 2025 will make investing in Bitcoin ETFs a rational choice, and the recent inflow into ETFs and the rise in Coinbase premium index also indicate that mainstream investors are returning to the Bitcoin market.
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"MICA Daily｜Arthur Hayes: China's large-scale interest rate cuts will lead to a rise in Bitcoin" was first published on (Blockchain).
