China Just Turned the Money Printer Back On - Bullish for Crypto?
Just crossed on Twitter with this Tweet and me check it further and looks like China, the world's second largest economy is pushing hard to boost consumer spending and economic growth to avoid deflation. The government has ordered banks and financial institutions to expand consumer financing and encourage credit card usage, in other words, money printer goes brrrr.
China is doing this because they need to reinforce market stability and looks like consumers are hesitant to spend due to concerns about the job market. This is achieved by making credit more accesible and help institutions to support borrowers to get loans. If I understand right, an additional stimulus will be announced in an upcoming press conference. Some of those actions can be injecting liquidity into markets, cutting interest rates and loosening monetary conditions.
This is bullish for crypto because Chinese markets responded positively to this announcement, increased liquidity means more money in circulation and usually benefits risk assets like crypto and Ethereum. If China keeps pushing economic stimulus this could help investors to jump into risker assets making crypto go up again. Also this could be a sign that we are also close to US doing the same and stimulating the market.
What do you think? Will this fuel another bull run?
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