The post Bitcoin Price Momentum Could Be Tied to China, but Will Markets Follow Through? appeared on BitcoinEthereumNews.com.

Bitcoin price is often linked to U.S. interest rates, inflation, or Wall Street demand. But another factor has quietly shaped many of its rallies: money printing in China. Data shows that when China increases its money supply, Bitcoin often climbs weeks later. This link is not new, but with the latest surge in Chinese liquidity, traders are again asking if the next wave of bullish momentum for Bitcoin could be made in China. China’s Liquidity Push and Bitcoin’s Reaction The People’s Bank of China (PBoC), which is China’s central bank, controls the supply of money in the economy. One key measure is called M2. This includes cash, checking deposits, and savings accounts. It is basically the broad money supply available in the economy. Screenshot Over the last decade, China’s M2 has expanded from about ¥3 trillion in 2010 to more than ¥6.6 trillion in 2025. Each time the PBoC increased liquidity in a major way, Bitcoin prices tended to rise in the following weeks. PBoC’s Money Push | Source: X For example, after the 2015 liquidity push, Bitcoin began a steady climb from the hundreds of dollars. In late 2020, when China added more liquidity, Bitcoin went on to break past $60,000 in the months that followed. Charts show that the present scenario looks similar. PBoC levels have been higher again, and the Bitcoin price is already holding strong above the $100,000 range. China’s M2 Dominance | Source: X Traders believe this may not be a coincidence. More money in the system often means more risk-taking, and Bitcoin can benefit from that flow. China-US M2 Ratio and Dollar Weakness Another way to look at liquidity is by comparing China’s M2 to the U.S. M2. When the China/US M2 ratio rises, it means China is expanding its money supply faster than…

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Filed under: News - @ August 23, 2025 12:23 pm