The monetary easing policy of China for the First Time in 14 Years to Counter Trump’s Tariffs: Major Impact on Bitcoin and the Crypto Market. This article analyzes the impact of China’s monetary easing on Bitcoin prices, along with its potential and risks in this context.
The monetary easing policy of China: A landmark move after 14 years
China’s recent the monetary easing policy of China includes measures like interest rate cuts, reduced bank reserve requirements, and injecting liquidity into markets via open market operations. According to ScienceDirect, similar quantitative easing policies, such as those in the U.S., have historically driven capital toward risky assets, including Bitcoin. With China-the world’s second-largest economy-facing slowdown pressures and Trump’s tariffs, “China monetary easing” aims to stimulate growth and ease financial strain.
However, the monetary easing policy of China doesn’t directly impact Bitcoin due to China’s 2021 ban on crypto trading and mining. Still, indirect demand through international exchanges remains robust. As liquidity rises, global investors may turn to Bitcoin as an inflation hedge, potentially boosting its price. S&P Global data suggests that during periods of ample liquidity, Bitcoin often acts as “digital gold,” attracting significant investment.
The connection between the monetary easing policy of China and Bitcoin’s price
The monetary easing policy of China could positively influence Bitcoin’s price by increasing money supply and fueling inflation expectations. As China pumps more liquidity into its economy, potential inflation may push investors toward assets like Bitcoin to safeguard their wealth. Research from pmc.ncbi.nlm.nih.gov indicates Bitcoin’s inflation-hedging properties, though it doesn’t always serve as a safe haven during all economic uncertainties.
The extent of “China monetary easing’s” impact depends on the policy’s scale and responses from other central banks, like the U.S. Federal Reserve. If the Fed also eases monetary policy in response, global liquidity could surge, benefiting Bitcoin. Conversely, if the Fed tightens, Bitcoin might face downward pressure due to liquidity concerns.
On X, crypto enthusiasts like @StarknetBro and @SHale44687 express optimism that the monetary easing policy of China will favor Bitcoin and other crypto assets. Yet, short-term volatility is likely as markets react to breaking news.
Trump’s tariffs and Bitcoin amid the monetary easing policy of China
Trump’s tariff threats, including a 10% levy on all Chinese goods since February 2025, have triggered significant global financial market turbulence. AP News reports that Bitcoin’s price dipped sharply after the tariff announcements but rebounded quickly, buoyed by speculative sentiment and liquidity from policies like the monetary easing policy of China
Trump’s tariffs could erode confidence in the global economy, prompting investors to pull funds from risky assets like crypto. However, the monetary easing policy of China might mitigate this by injecting liquidity, providing a tailwind for Bitcoin. If trade tensions escalate, Bitcoin could be seen as a safe haven, though Cointelegraph notes it doesn’t consistently act as one, especially during major liquidity crises.
Bitcoin’s price outlook in this context hinges on balancing “China monetary easing’s” liquidity boost with Trump’s tariff uncertainties. In the short term, Bitcoin might fluctuate between $90,000 and $120,000. Over the medium term, if the monetary easing policy of China persists and tariffs are managed, Bitcoin could hit new highs above $150,000. But if trade wars intensify, prices might drop to $80,000–$90,000.
Bitcoin’s future with China monetary easing and Trump’s tariffs
Long-term, the monetary easing policy of China could propel Bitcoin if global liquidity remains abundant and investors continue viewing it as an inflation hedge. Yet, risks like China’s strict crypto regulations and Trump’s tariffs could dampen this upward momentum.
For accurate predictions, investors should monitor updates from Bitcoin.com News, AP News, and economic reports from the Fed and the People’s Bank of China. The monetary easing policy of China opens doors for Bitcoin, but it also brings challenges requiring cautious investment strategies.
China monetary easing and Bitcoin-Opportunities and risks
China’s the monetary easing policy of China launched for the first time in 14 years amid Trump’s tariff threats, creates a complex environment for Bitcoin and the crypto market. In the near term, Bitcoin’s price may rise with increased liquidity, but tariff-related volatility could push it down. Over the long term, if the monetary easing policy of China sustains and global economics stabilize, Bitcoin could reach record highs. Stay updated with Bitcoin.com News and trusted sources to keep abreast of “China monetary easing” and crypto market trends. Invest wisely, diversify your portfolio, and prepare for volatility to succeed in this dynamic market!
Explore MEVX Trader expert analysis on the monetary easing policy of China its impact on Bitcoin prices, and Trump’s tariff threats-unveiling opportunities and risks in the crypto market. Stay ahead by following Giang, the website, for the latest updates and insights on these dynamic financial trends!