The People’s Bank of China (PBOC) suggested a softer monetary policy in its fourth session on December 27. The bank announced plans to reduce the reserve requirement ratio and interest rates at the appropriate time. Financial analysts expect a 1.5% cut in the target interest rate to align credit demand with monetary policy. This move could lead to an increase in Bitcoin price in China. Arthur Hayes, the founder of BitMEX, predicts that the interest rate decrease in China combined with the low interest rate policy of the Federal Reserve in the US will drive up the prices of Bitcoin and other digital assets in 2025. Hayes believes Bitcoin is the best asset against global fiat currency depreciation. Following the Federal Reserve’s interest rate cut in September, the price of Bitcoin surged above $60,000 and reached a record $100,000.
