QCP Capital Sees Potential Cryptocurrency Surge Amid Chinese Stimulus

China is poised to introduce additional stimulus measures, which could bolster the growth of risk assets, including cryptocurrencies, according to QCP Capital.

On September 24, the People’s Bank of China (PBOC) announced monetary policy easing, including rate cuts on several instruments and a reduction in reserve requirements.

This latest move has freed up approximately 1 trillion yuan (~$142 billion) for lending institutions. The Chinese authorities will allocate half of this amount to support stocks.

“The PBOC has signaled readiness for further easing. […] All major monetary regulators, except the Bank of Japan, are prepared to add liquidity,” the commentary stated.

Experts anticipate that the upcoming surge in digital asset prices will catch many investors off guard.

BRN analyst Valentin Fournier commented to The Block that the influx of liquidity will have a positive effect on coins with low market capitalization.

“Bitcoin is stabilizing below $64,000. There are numerous short positions in the market that could trigger a short squeeze, contributing to upward momentum,” the specialist noted.

Previously, several experts highlighted the high likelihood of a bitcoin rally in the coming months, driven by institutional adoption and macroeconomic conditions.

Earlier, renowned analyst Peter Brandt predicted a fivefold increase in the leading cryptocurrency relative to gold.