Bitcoin Recovers Amid China’s Liquidity Promise
After a shaky week, Bitcoin bounced back, kicking off Monday’s trade at about $58,591—a nice lift from the lows it hit last Thursday.
Still Not Fully Out of the Hole
Even with the recent climb, BTC isn’t saying “bye” to volatility just yet. It flirted with a critical support zone after slipping below $50,000 last Monday, leaving traders on a swing‑ride between hope and caution.
China’s Big Liquidity Play
- China’s central bank is gearing up for a hefty liquidity injection that could give Bitcoin (and the crypto crowd) a generous boost.
- The People’s Bank of China (PBOC) historically boosts money supply in August—think August 11, 2020; August 31, 2021; 2022; and August 28, 2023.
- June saw only a drop‑in, but when it finally moves, the effect can ripple worldwide.
- Some analysts guess the PBOC might wait for the Federal Reserve to cut rates (scheduled around September 18) before loosening the reins, which could lift global liquidity and lift prices.
Geopolitical Twist: RIP in Russia
In a surprising move, President Putin signed a law legalising Bitcoin and crypto mining. The Kremlin is trying to keep pace with the US—especially since the US now tops 35% of global mining, while China dominates at 57%. These tactics are steadying the market and could usher in a medium‑to‑long‑term price rally, despite recent dips.
Consolidation After the Halving
Bitcoin is in a familiar consolidation swing after its recent halving event—a stage that often signals a big‑bang price surge on the horizon. Coupled with China’s forthcoming liquidity injection, the chart looks primed for a climb.
Exchange Withdrawals Insights
Data shows almost 99,308 BTC (about $5.96 billion) were pulled from exchanges since July 12, 2024, pointing to strong accumulation. The biggest centralised exchanges now hold roughly 2,679,880 BTC—roughly $161 billion as of August 12. That’s the lowest reserve level since the 2018 price drop on November 19.
Bottom Line
Bitcoin’s week since last Thursday is positive, but the market is still in an eye‑brow‑raising phase. A mix of China’s liquidity injection, Russian regulatory moves, and the natural halving‑induced consolidation sets the stage for potential upside.
Hey, crypto lovers—keep your eyes on the action. The next couple of weeks could be the fuel for a thrilling ride!
