Bitcoin gained further ground during the Asia trading session after the People’s Bank of China (PBOC) announced a significant liquidity injection aimed at supporting credit and economic growth. The move added to bullish sentiment across global markets and reinforced Bitcoin’s role as a decentralized hedge in an era of expansive monetary policy.
Beijing’s Monetary Push
The PBOC confirmed plans to inject 700 billion yuan through outright reverse repos on August 8, part of its strategy to maintain liquidity at “reasonably ample” levels. This step follows fresh guidelines designed to expand financing for advanced manufacturing, using structural monetary tools to channel longer-term credit into targeted sectors.
Why It Matters for Bitcoin
When central banks increase liquidity, risk assets tend to benefit and Bitcoin often responds strongly. Traders in Asia viewed the PBOC’s move as a short-term catalyst, bolstering the cryptocurrency’s safe-haven and anti-inflation narrative. The announcement also coincided with continued demand for stablecoins in the region, underlining the broader trend of digital asset adoption in Asia’s financial hubs.
Market Snapshot
At the time of writing, Bitcoin is trading near $117,000, with intraday levels ranging between $114,314 and $117,458. Analysts note that sustained global liquidity injections, combined with supportive regulatory developments elsewhere, could keep upward pressure on Bitcoin in the near term.
source: Reuters, Trading Economics, Cointelegraph
