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Bitcoin Prices Surge on $65 Billion in Funding from People’s Bank of China
Unprecedented move sparks cryptocurrency speculation. The People’s Bank of China (PBoC) has injected a whopping $65 billion into the economy, fuelling a surge in Bitcoin prices. This move, combined with global liquidity injections, has sent a strong signal to the market that Bitcoin is poised for a significant increase in value.
Central banks worldwide, including the Bank of Japan, are pumping liquidity into the economy, indicating a possible surge in Bitcoin. The injection comes on the heels of surprisingly negative economic trends in China, where bank loans contracted for the first time in 19 years. This contraction has raised concerns about an economic slowdown, prompting the Chinese Communist Party to pledge new policy measures to stimulate growth.
The PBoC is anticipated to maintain its injections of liquidity, which have reached $97 billion in the past month. Not only China, but also other countries have experienced a capital influx of $1.2 trillion since the money base began to expand globally in January. The global liquidity momentum model (MSI) has received its first positive signal since November 2023, indicating that Bitcoin could potentially increase in value.
Meanwhile, the Bank of Japan has been injecting liquidity, with a $400 billion injection in recent weeks. This has led to heightened central bank activism, and global M2 growth has reached an incredible $120 trillion. Bitcoin’s price is expected to rise by 2-3X in the next few months, driven by the expansion of the money supply.
The current market value of bitcoin has remained relatively stable at $60K and $62K, potentially creating conditions for a liquidity grab or short squeeze. Institutions have been buying the dip, suggesting monetary increases over time. Bitcoin’s Open Interest has remained relatively stable in recent weeks, despite some minor price drops, driven by activity on the OKX and Binance exchanges.
The strengthening Yuan also helped to stabilize the price of Bitcoin, as the Chinese currency gained momentum against the U.S. dollar in various recent days. The Yuan is anticipated to be strengthened by liquidity injections from the PBoC, and analysts anticipate a potential price of $74K in late Q4 2024.
Institutions and traders are optimistic about a significant price increase, driven by global liquidity momentum. As the cryptocurrency market continues to reel from the effects of central bank activism, it is clear that Bitcoin could experience a reversal in value. With liquidity injections reaching record levels and institutions buying the fall, there seems to be no reason for concern.
The future of cryptocurrency is likely to be shaped by significant changes in the coming months, as the market continues to evolve. For more in-depth analysis and insights into the world of cryptocurrency, check out our article on “Bitcoin Price Predictions 2024: Will We See a New All-Time High?” on CoinSeeks.com.