China’s Rate Cut Triggers Bitcoin Boom: BTC Skyrockets to $101K in May 2025 🚀📈
🇨🇳 China’s Monetary Easing Amid Trade Tensions
On May 7, 2025, the People’s Bank of China (PBOC) announced a 10 basis point reduction in its seven-day reverse repurchase agreement rate, lowering it from 1.50% to 1.40%, effective May 8. Additionally, the PBOC plans to reduce the reserve requirement ratio (RRR) for banks by 0.5 percentage points on May 15, injecting approximately 1 trillion yuan ($139 billion) into the financial system.
These measures aim to bolster China’s economy amid escalating trade tensions with the United States, including newly imposed U.S. tariffs of up to 145% on Chinese exports.
📈 Bitcoin Surges Past $100K
Following China’s monetary easing, Bitcoin’s price surged, surpassing the $100,000 mark for the first time in three months, reaching an intraday high of $101,370. This rally is attributed to several factors:
- Institutional Investment: Increased institutional demand, with $5.3 billion flowing into spot Bitcoin ETFs over the past three weeks.
- Alternative Asset Appeal: Investors seeking alternatives to traditional safe havens amid global economic uncertainties.
🔮 Future Outlook
Analysts predict that Bitcoin’s price could continue to rise, with projections suggesting it may reach $120,000 in the second quarter of 2025. Some forecasts are even more optimistic, anticipating a potential surge to $250,000 by the end of the year, driven by macroeconomic factors and increasing institutional adoption.