Bitcoin (BTC) temporarily exceeded $97,000 on the 7th and then retreated to the $96,000 range. This brief test occurred amid growing speculation about China's liquidity increase and the possibility of the U.S. Federal Reserve (Fed) returning to quantitative easing (QE).
The timing of this movement was just hours before an important Federal Open Market Committee (FOMC) meeting, which prompted traders to reassess the global macroeconomic situation.
China Provides $138 Billion in Liquidity... Risk AppetiteetTrade Negotiations H2oming
The State Council Information Office held a press conference. The PB'S Director of the General Office attended and announced an interest rate cut.
The ANNOUNCED that it requirement will be reduced by. 0.5points about 1 trillion trillion approximately $138 billion) of long-term liquidity and will lower the policy rate by 10 basis points.
Local media reported that "The Director of the People's Bank of China's at the press conference that the lower the reserve requirement ratio by 0.5point to provide about 1 trillion yuan term the and lower the policy rate by 0.1 percentage points>OC lowered the 7-day reverse repo rate from 1.5% to 1.4%. This will further lower the loan prime rate by 10 basis points.
<>of's stimulus was not coincidental. A few hours ago, U.S. Treasury Secretary Scott Bessent confirmed that he will meet with Chinese Vice Premier He Lifeng in in Switzerland on May 10-11. This will be the first official trade talks since President Trump raised tariffs on Chinese imports to 145%.blockquote>
The market reacted quickly. According toBeissi, S&P 500 futures rose more than 1% on this news. Bitcoin also rose rose above $97,000 before falling back.
Former BitMEX CEO Arthur Hayes believes that dovish changes are very positive for cryptocurrencies. In a recent column recent, argued that if the Fed restarts QE, Bitcoin could reach $250,000 by the end of 2025. He sees the Fed's liquidity moves as the beginning of that process.
BeInCrypto also explored the possibility of QE's return and its impact. A new wave of QE could reduce real yields, devalue fiat currency, and drive significant fund inflows into cryptocurrency assets.
However However, not everyone QEQ is necessary. In an opposing report, macroeconomic experts argue that quantitative easing is unnecessary amid current market turmoil. They claim that the financial system has not shown signs of systressemic stress.
Meanwhile, gold reached nearly an all-time high at $3,437.60 per ounce, up 28.84% year-to-date. This reflects investor.
The's sharp rise in gold prices indicates investors' fear of trading amid economic instability.
Investors are preparing for clarity clarity or additional ambiguity as Fed Chairman Jerome Powell prepares to address the market today. Bitcoin's rise above $97,000 shows the market's optimistic view. However until the Fed fully reveals their cards,, the cryptocurrency market may within range.
Bitcoin could soon establish support above $97,000 if Powell hints at a shift. Otherwise, traders may experience more volat>
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Gold Price Performance. Source: [TTradingView](https://www.tradingview.com/x/VZuT7uOl/)
</a figcaption></figure><p>At the time of writing, BTC is trading at $$96,497, up 2.16% over the past 24 hours. This retreat to the $96,000 range occurred amid market uncertainty. <span>Traders are preparing for the FOMC later today</</span>.</p><p><h2>Fed Bond Purchases: A Sign of Quantitative Easing?</h?</h>2>Meanwhile, the Fed's balance sheet activity this week is drawing attention. On On May 6,, the Fed purchased $14.8 billion 10-year Treasury bonds. Following the purchase of $20 billion in 3-year Treasury bonds on May 5, this amounts to a total of $34.8 billion over two days.</p><><qu>coastal Journal reported,](https://kr.beincrypto.com/wp-content/uploads/2025//gold_2025-05-07_07-40.png)
