Analyst: Over the past eight years, the price of Bitcoin has shown a positive correlation with the scale of the balance sheet of the People's Bank of China

2024-09-27 20:45:17

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ChainCatcher news, according to CoinDesk, analysts say that over the past eight years, the price of Bitcoin has shown a positive correlation with the size of the Chinese central bank's balance sheet. The 30-day correlation coefficient between Bitcoin's price and the size of the Chinese central bank's balance sheet is 0.66. It has been positive except for 2016 and from the end of 2022 to 2023. On the other hand, Bitcoin's correlation with the Federal Reserve's balance sheet over 30 days is -0.88, the lowest level recorded since 2016.

The Chinese central bank is considering launching an economic stimulus plan of up to 1 trillion yuan (approximately 142 billion USD) to boost the economy, which has led to a significant rise in Asian stock markets, particularly the notable increase in the CSI 300 index.

Analysts believe that this stimulus plan may indirectly benefit Bitcoin, as it could increase investment in blockchain and cryptocurrency-related projects. This monetary easing policy may drive more capital into the digital asset space.

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