China has just announced a large-scale economic stimulus package to cope with the impact of the trade war with the United States. Measures include interest rate cuts, reducing the reserve requirement ratio, and injecting over 138 billion USD in liquidity into the economy. While this is a move aimed at supporting domestic growth, its spillover effects open up many great opportunities for the global cryptocurrency market in the next 1–2 years.


Why is this good news for crypto?



  1. Money printing → increasing liquidity → risk assets benefit:

    Large amounts of money flowing into the economy will seek high-yielding assets. In the context of the Chinese stock market recovering, cryptocurrency – with high liquidity and strong price appreciation potential – can become an attractive alternative investment channel, especially among the youth and tech investors.



  2. Pressure from the trade war → seeking non-political assets:

    The prolonged tension between China and the US is causing investors to increasingly turn to assets not controlled by any government – such as Bitcoin and stablecoins. In the long run, crypto is seen as a “hedge asset” against political and trade risks.



  3. The yuan may continue to face depreciation pressure:

    Interest rate cuts and money printing often lead to the risk of depreciation of the local currency. If the yuan continues to weaken, people and businesses may transfer some assets into Bitcoin or stablecoins to preserve value, as has occurred during previous currency crises.



  4. Increasing investment in technology → paving the way for blockchain:

    China has restricted free crypto trading, but actively supports blockchain technology and digital payments. The stimulus package targeting the technology and consumer sectors is a clear indication that blockchain applications, Web3, and AI combined with crypto will have ample room for development in the Asia region in the coming years.





In the context of the global economy entering a period of loose monetary policy and geopolitical instability, crypto is emerging as a channel for value storage and flexible investment, especially in major economies like China.


Conclusion


China's stimulus package is a potential long-term catalyst for the cryptocurrency market. In the next 1–2 years, as capital flows begin to shift and the global trend favors decentralized assets increases, crypto will have a strong “tailwind” to continue its growth.



⚠️ Warning: The crypto market always carries risks. Invest wisely, actively manage your capital, and do not use excessive leverage.