Bitcoin trader sees 2 months to all-time high as China cuts key rates

Bitcoin (BTC) aimed for $68,000 at the July 22 Wall Street open as a Chinese interest rate cut added to bullish crypto catalysts.

BTC/USD 1-hour chart. Source: TradingView

China enacts “unexpected” rate cuts

Data from Cointelegraph Markets Pro and TradingView showed BTC price moves targeting range highs after a dip below $67,000 earlier in the day.

The upward reversion came amid mixed performances from Asia stocks as China cut several key interest rates in a step that “surprised markets.”

The People’s Bank of China (PBOC) confirmed that it would cut the seven-day reverse repo rate by 0.1% to 1.7%, while the one-year and five-year loan prime rate (LPR) followed suit, sources including Reuters reported.

“The cut today is an unexpected move, likely due to the sharp slowdown in growth momentum in the second quarter as well as the call for ‘achieving this year’s growth target’ by the third plenum,” Larry Hu, chief China economist at global financial services firm Macquarie Group, told the publication.

Reacting, markets commentator Holger Zchaepitz noted that it had been almost a year since the last Chinese rate cut.

“Chinese stock market not really enthusiastic,” he wrote in part of a post on X.

Global interest rates heading lower is a key ingredient for risk asset performance, including crypto. As Cointelegraph reported, the United States has yet to follow China and Europe in beginning a rate cut cycle, with markets expecting this to begin in September.

Adopting a more conservative stance, popular crypto and macro commentator TMXC Trades suggested that China’s select cuts would not have the desired effect.

“Coming into 2024, traders were betting on a massive coordinated global easing cycle (after they totally underestimated hikes) that would reverse half or more of all tightening. Here today in mid-July, virtually none of that has come to pass,” it concluded.

Central bank interest rate expectations. Source: TXMC Trades/X