China issues $44B cash injection giving Bitcoin bulls a new signal as fear grips market
China’s central bank launched a new overnight reverse repo tool, injecting 300 billion yuan ($44.1 billion) on June 29, alongside 157.5 billion yuan of seven-day reverse repos. The move gives traders a more immediate gauge of short-term liquidity conditions and could matter for Bitcoin if it becomes a repeated funding valve rather than a one-off month-end adjustment. BTC was near $60,000 after an 18% monthly drop, with weak ETF flows and extreme fear keeping sentiment fragile. The key question is whether the PBOC continues these overnight operations, at what size, and whether funding stress eases. A single injection is not enough to change Bitcoin’s risk backdrop, but repeated use could signal broader liquidity support that may improve conditions for risk assets.
