China rate cuts elevate Bitcoin momentarily before retracement
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China’s central bank, the People’s Bank of China (PBOC), has cut key interest rates to stimulate economic growth amid ongoing challenges in the property sector and the broader economy. The seven-day reverse repo rate was reduced from 1.8% to 1.7%, the one-year loan prime rate (LPR) from 3.45% to 3.35%, and the five-year LPR from 3.95% to 3.85%. China interest rate cuts (Trading Economics) These cuts follow weaker-than-expected second-quarter GDP growth of 4.7% and aim to address weak consumer demand and deflationary pressures. The property sector remains troubled, with major developers facing financial difficulties. Market reactions were mixed, with muted responses in Chinese stock markets but some positive movement in Hong Kong’s Hang Seng index. Following Bitcoin’s rally on the initial news of Biden dropping out of the US presidential race from $65,800 to $68,500 hours later, the top digital asset retraced to around $67,800 by the time of the Chinese announcement. It rose around 0.5% as the news of the rate cut broke but has since declined around 1% to $67,400 as of press time. The effectiveness of the rate cuts remains uncertain, and further policy actions may be necessary for sustained economic recovery. Latest Alpha Market Report Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies. Source: https://cryptoslate.com/insights/china-rate-cuts-elevate-bitcoin-momentarily-before-retracement/
Filed under: News - @ July 22, 2024 1:24 pm