While the new stimulus packages announced by the People's Bank of China to revive the economy had a great impact on global markets, they did not have the same effect on the cryptocurrency market. The bank cut the reserve requirement ratio by 50 basis points and lowered the reverse repo rate to 1.5%, aiming to boost domestic demand and support financial markets. The move led to a more than 4% rise in the Chinese stock market and a positive trend in European and US stock markets.
However, the cryptocurrency market remained indifferent to these developments and continued to show a calm picture. Analysts state that the timing of China's stimulus decision is shaped according to the FED's interest rate policies. The reason why the crypto markets remained unresponsive to this move is interpreted as the lack of clarity of expectations that more stimulus decisions may come in the short term.
