China’s National Development and Reform Commission, led by Chairman Zheng Shanjie, unveiled a $340 billion stimulus plan impacting global markets, particularly cryptocurrency sectors, in May 2025.
The stimulus enhances liquidity in financial markets, boosting Bitcoin and Ethereum values, while dovish Western policies contribute to rising investor optimism in the crypto sector.
China has allocated $340 billion to support its economy, initiating measures that could influence the global cryptocurrency market significantly. The People’s Bank of China confirmed reductions in reserve ratios and policy rates to drive growth.
This development involves the National Development and Reform Commission and prominent crypto figures like Arthur Hayes. The policy changes are set to increase liquidity, potentially ushering a new phase in the crypto market.
Bitcoin Approaches $100K as Global Policies Ease
The market’s response has been notably positive, with Bitcoin nearing $100,000 mid-2025. China’s measures combined with dovish stances from the U.S. Federal Reserve and the ECB, enhance overall market liquidity.
Historical precedents suggest a boom in Layer 1 and Layer 2 protocols. Experts note increasing GitHub activity and positivity within DeFi and Web3 communities, reflecting strong market confidence in these sectors. Arthur Hayes highlighted, “This potential ‘bazooka’ … may be further amplified by dovish stances in the West. Both the U.S. Federal Reserve and the European Central Bank (ECB) have recently moved to more supportive monetary policies, adding liquidity to global markets. Hayes has predicted a ‘glorious’ 2025 for bitcoin as fiscal support from major economies converges with growing demand.”
DeFi Growth Mirrors Past Stimulus-Driven Surges
Past Chinese and U.S. monetary easings have led to crypto surges. The 2020 stimulus spurred the DeFi Summer, influencing new Ethereum highs. Such cyclical patterns often uplift robust crypto assets like BTC and ETH.
Experts like Arthur Hayes foresee a prosperous year ahead for Bitcoin as global fiscal policies remain supportive. The alignment of historical liquidity trends with current policy shifts suggests substantial crypto growth.
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