$70K next for Bitcoin? China joins Fed in ‘huge macro event’

Bitcoin (BTC) stands to win big thanks to macroeconomic liquidity driven by both the United States and China, traders say.

In its latest bulletin to Telegram channel subscribers, trading firm QCP Capital joined voices calling for BTC price gains on the back of a “pivotal moment” for markets.

Global market “optimism” follows China’s policy easing

Bitcoin is in line to enjoy a period of easy liquidity and risk-on appetite thanks to global central bank monetary policy easing, QCP Capital believes.

China’s central bank, the People’s Bank of China (PBoC), announced a 50-basis-point (bps) cut in its reserve requirement ratios (RRRs) — the amount of funds banks must hold in reserve — this week.

This signals that monetary policy easing, as announced by both the United States Federal Reserve and European Central Bank (ECB), among others, this month, is becoming a global phenomenon. The result is music to the ears of crypto bulls.

“The 4.15% rally in the Shanghai Composite Index (SSE) today was driven by the PBoC’s significant stimulus measures, marking a pivotal moment for global markets,” QCP wrote, referencing the day’s Asia trading session stock gains.

“The 50bps cut in Reserve Requirement Ratios (RRR) freeing up 1 Trillion Yuan for lending, coupled with a 500 Billion Yuan funding program for stock market investment, has sparked optimism across global markets.”

QCP forecast a “wave of global easing” helping facilitate an influx of capital into risk assets.

“The strong policy action by China is on back of the Fed’s 50bps cut, suggesting a continued wave of global easing that will provide strong support to asset prices in the near term,” it continued.

Others were equally buoyant, among them Julien Bittel, head of macro research at Global Macro Investor.

Dan Tapiero, founder and CEO of 10T Holdings, described China’s decision as a “huge macro event.”

“Things so bad in China, govt flinches. QE for China equity. Rate cuts. Big liquidity coming,” he told X followers, adding that he was “bullish” on both Bitcoin and gold.

Bitcoin liquidity bets pile in

Bitcoin, meanwhile, failed to make progress on the day, sticking to $63,000 with BTC/USD wedged between areas of buy and sell liquidity.

$62,000 and $65,000 remained the key levels on traders’ radar.

Data from monitoring resource CoinGlass showed liquidity thickening on both sides of exchanges’ order books as prices stayed rangebound.

“The bulls know where the liquidity lies,” popular trader Daan Crypto Trades commented on the status quo, adopting an optimistic tone.

“$65K is the level to break to make a higher high and flip the market structure. $70K is ripe for the taking after that. There’s also a ton of liquidity sitting in that region. One step at a time.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Source