Bitcoin crosses $ 97,000 while central banks double the liquidity

• PBOC lowers interest rates and reduces the mortgage costs.
• trade talks planned between the USA and China.
• The markets are waiting for the FOMC to change policy.

The Bitcoin course rose to over 97,000 on Wednesday before stabilizing over 96,000 USD, since a convergence of global monetary policy measures moved the markets before the Federal Reserve was announced.

The rally of the cryptocurrency followed hours after China injected $ 138 billion into its economy through an extensive economic stimulus package and the US Federal Reserve vigorously bought bonds worth a total of USD 34.8 billion.

These developments, combined with the renewed trade talks between China and the USA, fueled speculation about a return to quantitative loosening and moved the global mood towards risky assets such as cryptocurrencies.

China injects liquidity and lowers the interest rates

At a press conference of the State Council press office, the governor of the Volksbank in China, Pan Gongsheng, announced a reduction in the necessary minimum reserves (RRR) by 0.5 percent long -term liquidity is released.

This measure was combined with a reduction in the main interest rate by 10 basis points and a reduction of the seven-day reverse repo set from 1.5 % to 1.4 %.

The economic stimulus package also included a new credit facility of 500 billion yuan, which aims to support geriatric care and internal consumption.

In addition, the mortgage interests were lowered and the minimum reserves for car financing companies were relaxed.

These steps should counteract the weakening domestic demand and support the declining real estate sector.

The time of the announcement was crucial. He came shortly before the United States confirmed that Finance Minister Scott would meet on May 10th and 11th with the Chinese Vice Prime Minister He Lifeng in Switzerland.

The upcoming summit marks the first official trade talks since President Trump increased the tariffs to Chinese imports to 145 %.

Bitcoin and S&P 500 react to global relaxation signals

The markets reacted immediately to the dual headings of stimulus and diplomacy.

According to The Kobeissi Letter, the S&P 500 futures rose by more than 1 %, while Bitcoin jumped over 97,000 USD.

The profits of the cryptocurrency were later dampened a day, with BTC being traded at $ 96,911 at the time of writing, which corresponds to an increase of 2.93 % in the last 24 hours.

Source: Coinmarketcap

The gold price also increased strongly and approached the all-time highs with $ 3,437.60 per ounce, which corresponds to an increase of 28.84 % since the beginning of the year.

The profits of the precious metal indicate that investors are preparing for uncertainties in the run-up to the FOMC declaration of the Federal Reserve.

The bond purchases of the Fed heat qe speculations on

to the market moment, the silent bond purchases of the Federal Reserve in the amount of USD 34.8 billion contributed to two days. On May 5, she acquired bonds worth $ 20 billion with a term of 3 years, followed by a purchase of $ 14.8 billion in 10-year bonds on May 6th.

These steps were made without a formal announcement of a change of policy.

The extent and the speed of the purchases heated speculation that the Fed tests the waters for a return to quantitative loosening measures.

This was done after months of careful references from the chairman Jerome Powell, who had emphasized that further tightening or balance sheet reductions were possible depending on inflation trends.

Arthur Hayes, former CEO of Bitmex, suggested in a recent column that these measures could drive Bitcoin to $ 250,000 by the end of 2025 should be officially resumed.

However, other analysts remain skeptical and indicate the lack of systemic financial burdens that would typically justify such a measure.

The eyes on the Fed, while the markets are waiting for clarity

Today's FOMC meeting will be followed carefully in order to obtain signals for the political attitude of the Fed.

A Dovish Wende could help Bitcoin find stronger hold of over 97,000 USD, while a Hawkian tone could lead to increased volatility.

The investors remain careful but attentive, with global coordination of central banks and renewed trade diplomacy, which indicates deeper macroeconomic changes.

whether Bitcoin can maintain its upward trend, largely depends on the message the Fed sends in the coming hours.