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- China’s $138B liquidity boost triggers a rush into Bitcoin as fiat weakens.
- Bitcoin trading volume jumps nearly 40% amid trade optimism.
- US-China talks set the tone for crypto markets with reduced tariff tension.
Bitcoin has broken above the $101,000 level to record a sharp 4.55 percent increase yesterday. The sudden price run reflects new momentum after weeks of sideways trading since March’s low of $74,000.
The rally follows immediately after China’s central bank has sought to inject fresh liquidity into its financial system. In a May 7 press briefing, People’s Bank of China Governor Pan Gongsheng disclosed a 0.5 percent reduction in the reserve requirement ratio and a 0.1 percent reduction in policy rate. This policy shift will liberate about 1 trillion yuan, approximately $138 billion.
This massive infusion is anticipated to jumpstart lending and relieve financial pressures in Chinese markets. While Bitcoin has become a very profitable asset and investment, it has also weakened the yuan’s value, making investors move funds to other storehouses of wealth, such as Bitcoin. With domestic equities and bonds still lagging, Bitcoin is gaining as a destination of speculative capital.
Market Optimism Pumped by Massive Volume Spike and Trade Talks
Optimism leading to a major trade-facilitating conference between their US and Chinese officials fuels the rally. US Treasury Secretary Scott Bessent will meet China’s Vice Premier He Lifeng in Switzerland later this week. This high engagement level has begun to raise hopes of de-escalating tensions that have run high for years, with a tariff as high as 145 percent on certain goods from both nations.
More optimistic sentiments of “equal consultation” and fewer resentments have bolstered investors’ sentiments, resulting in an improved milieu for risk assets. Market stability in global trade decreases uncertainty, and inflation spikes can be damaging to crypto performance.
Bitcoin’s one-day trading volume has increased to $61.91 billion, almost 40 percent higher. It is worth more than $2.01 trillion, ensuring its dominance in the digital asset space. Meanwhile, according to CoinMarketCap data Bitcoin has reached $99,650 within a few hours of the price chart and closed the gap over the $101,000 mark.
Behind Bitcoin’s $101,000 surge above is China’s $138 billion liquidity move and the growing optimism surrounding the US-China relationship. As macro and geopolitics conspire, Bitcoin maintains investor flows as the world changes.
Also Read: SHIB in Trouble: Majority of Holders Now Losing Money on Token
