Bitcoin climbed above $97,000 on Wednesday before settling back to $96,000, as markets reacted to China’s liquidity injection and speculation over potential U.S. Federal Reserve monetary policy shifts.

The surge coincided with China’s announcement of a $138 billion economic stimulus package.

This has intensified debate over global macroeconomic stability ahead of a Federal Open Market Committee (FOMC) meeting.

The People’s Bank of China (PBOC) announced a series of monetary policy adjustments, including a 0.5 percentage point reduction in the reserve requirement ratio, effectively releasing 1 trillion yuan ($138 billion) in long-term liquidity.

“Thanks to POTUS, the world has been coming to the U.S., and China has been the missing piece—we will meet on Saturday and Sunday to discuss our shared interests. The current tariffs and trade barriers are unsustainable, but we don’t want to decouple. What we want is fair trade,” Bessent stated.

Markets responded swiftly. According to The Kobeissi Letter, S&P 500 futures surged over 1%, triggering Bitcoin’s climb past $97,000 before it pulled back. As of this writing, BTC is trading at $96,497, up 2.16% over the last 24 hours.

Arthur Hayes, former CEO of BitMEX, sees the Fed’s dovish stance as wildly bullish for crypto.

“The Fed’s liquidity moves are the beginning of that process,” Hayes argued, suggesting that Bitcoin’s upward trajectory is closely tied to monetary policy adjustments.

As global financial markets navigate China’s stimulus, U.S. trade talks, and Federal Reserve decisions, Bitcoin’s price action remains highly sensitive to macroeconomic developments, reinforcing its status as a leading indicator of liquidity trends.

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