Bitcoin (BTC) jumped above $97,000 on Wednesday before retreating to the $96,000 range. The brief test came as markets absorbed a wave of liquidity-boosting announcements from China and growing speculation that the US Federal Reserve (Fed) may be edging toward a return to quantitative easing (QE).
The moves’ timing, just hours before a crucial FOMC (Federal Open Market Committee) meeting, has sent traders scrambling to reassess the global macro picture.
China Unleashes $138 Billion in Liquidity As Trade Talks Reignite Risk-On Sentiment
The State Council Information Office hosted a press conference. In attendance, Governor Pan Gongsheng of the People’s Bank of China (PBOC) announced interest rate cuts.
The PBOC said it would cut the reserve requirement ratio by 0.5 percentage points, releasing roughly 1 trillion yuan ( ~ $138 billion) in long-term liquidity, and lower the policy interest rate by 10 basis points.
