Uncovered Disclosure Showcases Severe China 2025 Warning – Anticipated to Explode Bitcoin's Value
Bitcoin and cryptocurrency prices have seen a boost this week, with Bitcoin once again approaching the $100,000 mark as the market braces for an potential impact from Elon Musk.
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The Bitcoin price grappled with the beginning of 2025, amidst tumultuous global stock markets, despite rumors circulating that China might have outpaced Donald Trump and the U.S. in establishing a Bitcoin reserve.
Now, with the gaze of traders fixed on a significant date approaching for President Trump in the U.S., leaks suggest that China's central bank is in a frantic race to control an impending bond rally, preparing to launch a massive stimulus package.
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According to reports from Reuters, the People's Bank of China advised fund managers against participating in the bond rally, due to increased speculation that China will soon lower interest rates and release a wave of stimulus to breath life back into its economy.
China's 10-year and 30-year government bond yields, which move inversely with price, reached record lows this week following reports from the Financial Times indicating that China's central bank may reduce interest rates from their current level of 1.5% at a suitable time in 2025.
Meanwhile, Yuan Da, deputy secretary-general of National Development and Reform Commission (NDRC), stated during a press conference that China will significantly boost funding from ultra-long treasury bonds in 2025 to stimulate business investment and consumer initiatives, aligning with China's President Xi Jinping's claim in his new year message that China will foster economic growth in 2025.
"The amount of ultra-long special government bond funds will be substantially increased in 2025 to intensify and expand the implementation of the two new initiatives," Yuan commented, as reported by Reuters.
China's attempts to revive its stagnant economy have caught the attention of Bitcoin and crypto market observers as a potential bullish trigger heading into 2025.
"China is on the brink of collapse, and its 10-year bond serves as a reflection of the perilous state of their economy," an unnamed economist posted on X, hypothesizing that China may be compelled to ease its monetary policy in 2025.
"The nation must ease or it's game over. Despite the ineffectiveness of the liquidity, it will bolster other markets, including Bitcoin, as capital continues to fluctuate from the country, fueled by renewed and misdirected optimism."
Last year, Arthur Hayes, cofounder of Bitcoin and crypto derivatives frontrunner BitMex who later established the Maelstrom investment fund, predicted that a 'China bazooka' coupled with Fed easing would generate a "wonderful" Bitcoin and crypto bull market in 2025.
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Consequently, China's fresh stimulus measures have awakened a new cohort of younger investors within the country to the markets, according to a research report from the Hurun Research Institute and Ping An Securities, which discovered that these traders exhibit a higher risk tolerance and heightened interest in tech-related investments such as Bitcoin and crypto.
"Young traders have emerged as the driving force in the market," the report stated, as reported by the South China Morning Post*. "These novice investors are highly enthusiastic about technological innovation and nascent industries, and are more willing to tackle higher risks to reap substantial returns."
The rumors of China potentially having a larger Bitcoin reserve than the United States could influence future Bitcoin price predictions. Recently, there have been discussions about China lowering interest rates and releasing a stimulus package, which might positively impact the Bitcoin price.
