- The People’s Bank of China injected $65 billion into overall global liquidity.
- As a result, Bitcoin showed bullish sentiment.
The People’s Bank of China (PBoC) is increasing its stimulus efforts, with liquidity injections now surpassing $65 billion, as Tomas noted on X (formerly Twitter).
July data reveals that Chinese bank loans contracted for the first time in 19 years, signaling economic challenges.
The Chinese Communist Party recently committed to launching new policy measures, and the PBoC is expected to continue its liquidity injections in line with the 12-month cycle.
Source: TomasOnMarkets on X
This has led to Yuan strengthening against the U.S. dollar in recent weeks, potentially giving the PBoC more flexibility to implement further stimulus.
More central banks are increasing liquidity, signaling a potential Bitcoin [BTC] surge.
In the past month, the Bank of Japan and the People’s Bank of China injected $400 billion and $97 billion, respectively, expanding the global money base by $1.2 trillion.
The global liquidity momentum model (MSI) has issued its first bullish signal since November 2023, when Bitcoin [BTC] rose 75% before turning bearish.
Source: Bloomberg
This expansion is likely coordinated with the Federal Reserve, supported by a weakening U.S. dollar.
If the USD continues to fall, Bitcoin could see a 2-3X increase, driven by global M2 growth surpassing $120 trillion, which have resulted in rising Open Interest.
Of Open Interest & ETF
Bitcoin’s Open Interest remained steady despite recent minor price drops, consistently rising, mainly driven by activity on OKX and Binance exchanges.
This steady increase suggested ongoing strong demand for Bitcoin [BTC] assets, as growing liquidity is fueling more acquisitions.
This trend indicates that Bitcoin prices are likely to continue rising in the long run, supported by sustained buying pressure.
Source: TradingView
A rising Open Interest and global liquidity can drive increased spot Bitcoin ETF inflows, despite Bitcoin’s price drop.
Institutions are buying the dip, signaling a potential long-term price surge. Investors should consider purchasing BTC now before global liquidity pushes its value higher.
Source: Bitcoin Magazine
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Bitcoin liquidation levels
Bitcoin [BTC] remained around the key levels of $60K and $62K at press time, which could trigger a liquidity grab or short squeeze.
Source: Coinglass
A breakout at $62K price level might push Bitcoin towards $74K and potentially a new all-time high by late Q4 2024, fueled by the increasing global liquidity.
