Key Takeaways
- China considers a $1.5 trillion fiscal stimulus package.
- This package could be expedited if Trump wins the US election.
- Analysts predict the liquidity may drive Bitcoin demand higher.
As the U.S. presidential election nears, China is preparing for potential economic shifts.
If former President Donald Trump wins, Beijing may fast-track a $1.5 trillion fiscal package, currently scheduled for discussion by the National People’s Congress (NPC) Standing Committee from November 4 to 8.
The package would focus on local government debt relief and real estate investments, allocating around 6 trillion yuan to debt and 4 trillion yuan to land and property.
Effect on Bitcin
Bitcoin analysts believe China’s liquidity injection could drive Bitcoin prices upward. Kyle Chasse indicated expectations of a bullish Bitcoin market as liquidity enters the economy He said:
Money printer about to go parabolic.
Arthur Hayes, co-founder of BitMEX, echoed this view, stating that Bitcoin tends to outperform during periods of currency debasement, positioning it as a hedge against inflation.
Exchanges
While China maintains strict regulations on Bitcoin exchanges, peer-to-peer solutions continue to thrive, allowing local traders to bypass traditional exchange routes. This underground market could see increased activity as China moves forward with quantitative easing measures.
Bitcoin’s performance, currently approaching its all-time high, makes it an attractive option for investors seeking protection from inflation amid currency uncertainty.
