China’s central bank has flooded its economy with liquidity as monthly stimulus injections in the first half of 2025 reach historic levels, a turning point for global financial markets. Data shows that as part of this sustainable, large-scale effort, the Bank of China (PBOC) was injected with 2.5 trillion phosphorus in February alone.
PBOC data from 2021 to 2024 reveals that liquidity adjustments are carefully managed and rarely exceed RMB800 billion per month. Despite the occasional contraction, the comprehensive policy aimed to stabilize the Chinese economy in the face of inflation, real estate fluctuations and global uncertainty.
Market analysts are drawing links between this surge in China’s liquidity and a growing interest in cryptocurrencies like Bitcoin. Market analyst Crypto Rover has proposed on social media that an increase in China’s money supply could flow to Bitcoin and digital assets. Conversely, the first month of 2025 has experienced fluidity injections ranging from 2-5 times higher than the recent average.
China’s money printer will be brrrrr
This money flows through Bitcoin and Cryptocurrency! pic.twitter.com/erkit11owr
– Crypto Rover (@rovercrc) June 11, 2025
Bitcoin, risky assets respond to financial expansion
Analysts highlight the global impact of China’s bold liquidity injection measures, particularly on alternative assets. Crypto Market analyst Crypto Rover said these stimulus periods are typically in line with an increase in Bitcoin and other digital currencies. With each expansion of its money supply, major gatherings of cryptocurrency and goods occurred in previous cycles, particularly in 2015, 2019 and 2020. Capital inflows could also have a positive impact on Chinese stocks, bonds and key industries, such as technology and infrastructure.
This trend is highlighted in the current weekly Bitcoin chart. This indicates that the price has reached a new all-time high of over $110,000. For technical analysts, there have been four distinct bull flag formations since 2022, each followed by sharp breakouts and lasting benefits. If liquidity conditions continue, traders hope that Bitcoin will challenge $116,000 and $128,000 in the coming months.
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The US-China trade agreement adds market uncertainty
At the same time, the US and China announced new trade frameworks. President Donald Trump said the deal, which has been pending final approval, would ensure immediate supply and continued access to rare earth minerals for Chinese students at American universities.
The contract outlines the US tariff rate of 55% on Chinese products, a figure derived from multiple policy layers. The White House has confirmed these details, but some of the conditions Trump has explained have not been specified in official negotiation documents. “Our deal with China will be underway and subject to final approval with President XI and me,” Trump said.
Financial markets responded to these developments with volatility. US stock futures initially suffered losses, but quickly reversed as traders tried to understand the meaning of both the trade framework and the Chinese financial pivot. Currency strategists have also warned that an increase in the supply of the yuan could put pressure on the yuan, which could lead to greater fluctuations in the foreign exchange market, particularly if other central banks maintain stricter monetary policies.
Related: China will inject $139 billion into its economy. James Wynn calls – Vitcoin is the King
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