Correlation observed between PBoC liquidity injections and price of Bitcoin

Share This Post

Quick Take

The People’s Bank of China’s (PBoC) continued liquidity injections into the market have been observed to coincide with significant movements in Bitcoin’s price.

For instance, analyst Alessio Urban noted on Oct. 24 that as the PBoC’s liquidity injections surged, Bitcoin simultaneously broke above the $30,000 mark. A similar pattern was noted earlier this year, with a significant increase in PBoC’s liquidity that was followed by a rise in Bitcoin’s value. This expansion coincides with Bitcoin’s recent success, which isn’t solely attributed to liquidity injections but also to ETF inflows, as noted by Urban.

However, it’s crucial to understand that this isn’t a direct correlation but rather one of the many factors contributing to Bitcoin’s price movement, as Bitcoin is a global liquidity indicator.

Capital Inflows via ETFs and PBoC liquidity injection: (Source: Bloomberg)
Capital Inflows via ETFs and PBoC liquidity injection: (Source: Bloomberg, @AlessioUrban)

In a year, the PBoC has expanded its balance sheet by over 7%; the balance sheet equates to approximately 5.84 trillion in Chinese Yuan. This multifaceted dynamic illustrates the intricate relationship between traditional financial systems and the evolving digital currency environment.

BTCUSD & PBoC Balance Sheet: (Source: Trading View)
BTCUSD & PBoC Balance Sheet: (Source: Trading View)

The post Correlation observed between PBoC liquidity injections and price of Bitcoin appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Dogecoin’s 100% Weekly Gain Boosts $1 Goal: Will the DOGE Price Meet Buyer Demand?

The post Dogecoin’s 100% Weekly Gain Boosts $1 Goal: Will the DOGE Price Meet Buyer Demand appeared first on Coinpedia Fintech News The meme coin sector has seen significant growth recently,

Crypto And Trump Administration Is Just Getting Started, Brace Yourself Says Ron Hammond

The post Crypto And Trump Administration Is Just Getting Started, Brace Yourself Says Ron Hammond appeared first on Coinpedia Fintech News Ron Hammond, the director of government relations in

Robinhood CEO touts crypto’s cost advantage over TradFi operations

Robinhood CEO Vlad Tenev recently highlighted the substantial efficiency benefits of crypto operations, arguing that the crypto business model outperforms traditional finance in both cost and

Bitcoin Weekly RSI Entering Power Zone – Last Time BTC Soared 80%

Bitcoin experienced an explosive surge yesterday, with bulls driving the price to a new all-time high (gain) at $89,980 This relentless uptrend highlights growing optimism among investors as Bitcoin

SEC Crypto Litigation Releases – October 2024

The SEC has escalated its crackdown on crypto market manipulation, filing charges against multiple market makers and individuals for allegedly using deceptive tactics—such as wash trading and

Canary Capital Files for First Hedera (HBAR) Spot ETF with SEC: Will It Be Approved?

The post Canary Capital Files for First Hedera (HBAR) Spot ETF with SEC: Will It Be Approved appeared first on Coinpedia Fintech News It seems that the hype surrounding ETFs is back again following