Bitcoin Soars Past $97K as China Unleashes $138 Billion Stimulus and Fed Signals Liquidity Shift

Bitcoin shot past $97,000 midweek before settling just below at $96,000, fueled by China’s massive $138 billion liquidity injection and growing buzz around a potential pivot in U.S. Federal Reserve policy. The People’s Bank of China’s decision to slash key interest rates and inject long-term liquidity triggered a wave of bullish sentiment across financial markets, boosting not just crypto but also equity futures. This sudden policy action lands just days ahead of high-stakes trade talks between top U.S. and Chinese officials, further stirring market excitement.

China’s moves were calculated and broad-based—lowering reserve requirements, tweaking repo rates, and unveiling targeted stimulus tools aimed at aging demographics and consumption. But what really stirred investors was the broader message: Beijing is serious about reviving growth. Meanwhile, back in the U.S., Treasury Secretary Scott Bessent confirmed the first official trade dialogue since the Trump-era tariff hikes, emphasizing a desire for “fair trade” without economic decoupling. The geopolitical context added fuel to an already reactive crypto market.

Markets wasted no time. S&P 500 futures jumped, and Bitcoin briefly surged over 3% in response. The momentum cooled slightly, but BTC remained above $96,000 at last check. At the same time, traders began eyeing the Federal Reserve’s quiet purchase of nearly $35 billion in Treasury notes. These unannounced buys are raising eyebrows, with many viewing them as a form of stealth quantitative easing—an idea that could radically shift liquidity expectations in favor of risk-on assets like crypto.

Former BitMEX CEO Arthur Hayes weighed in, suggesting that this could be just the beginning. He predicted that Bitcoin could touch $250,000 by year-end if the Fed leans fully into a dovish monetary stance. For now, Bitcoin continues to act as a barometer of global liquidity sentiment, surging in response to dovish signals and reinforcing its evolving role as a hedge against traditional financial volatility.

Source: Nairametrics