China Ready to Stimulate Its Economy in the Coming Weeks<\/h3>\n\n\n\n
While headlines often focus on the US Federal Reserve<\/strong>, Chinese monetary policy exerts an equally crucial influence on global risk assets, including cryptocurrencies. A March 2025 report from 21Shares highlighted a 94% correlation<\/strong> between Bitcoin price and global liquidity<\/strong>, outperforming both the S&P 500 and gold. This close relationship underscores the importance of central bank decisions in shaping investor sentiment toward crypto markets.<\/p>\n\n\n\n According to Porkopolis Economics<\/strong>, the US monetary base M0<\/strong> currently stands at $5.8 trillion<\/strong>, followed by \u20ac5.4 trillion in the eurozone, $5.2 trillion<\/strong> in China, and $4.4 trillion<\/strong> in Japan. Given that China<\/strong> represents nearly 19.5% of global GDP<\/strong>, the PBOC’s monetary policy decisions have significant implications for international capital flows, even when the Fed monopolizes market attention.<\/p>\n\n\n\n Despite growing fears of a US recession, markets have remained remarkably resilient. The University of Michigan consumer sentiment survey, released in early August, revealed that 60% of Americans<\/strong> expect worsening unemployment<\/strong> in the next 12 months, a level of pessimism not seen since the 2008-2009 financial crisis<\/strong>.<\/p>\n\n\n\n Yet investors continue to show a certain optimism. The S&P 500 closed above 6,400 points<\/strong> for the first time in its history, while US 5-year Treasury yields climbed from 3.74%<\/strong> on August 4 to 3.83%<\/strong> on Friday, signaling reduced risk aversion. This increase in bond yields often indicates investors’ greater willingness to embrace riskier assets.<\/p>\n\n\n\n This combination of factors\u2014resilient equity markets, rising bond yields, and potential Chinese stimulus\u2014creates a favorable environment for an altcoin rebound. If the PBOC implements expansionary measures, the influx of liquidity could trigger a widespread rotation into cryptocurrencies, driving prices higher across a broad range of tokens.<\/p>\n\n\n\n Before the 2017 crackdown, China was one of the largest global markets<\/strong> for crypto and altcoins<\/strong>, with significant interest at both grassroots and institutional levels. Altcoins with strong Chinese roots such as NEO and VeChain<\/a><\/strong> were particularly popular among local investors.<\/p>\n\n\n\n![\"global](\"https:\/\/investx.fr\/en\/wp-content\/uploads\/sites\/5\/2025\/08\/image-105.png\")
Encouraging Signals in the US Market<\/h2>\n\n\n\n
![\"US](\"https:\/\/investx.fr\/en\/wp-content\/uploads\/sites\/5\/2025\/08\/image-106.png\")
<\/figure>\n\n\n\nNavigating Altcoins Uncertainties<\/h2>\n\n\n\n