China is aiming for a more orthodox monetary policy, which could catalyze bitcoin adoption.
Different listed companies announced their own strategic reserves of BTC.
According to bitcoin (BTC) investor Bill Miller, everything indicates that China will be the country that promotes a new bullish rally in bitcoin, due to a series of changes in its monetary policy and the rise of strategic BTC reserves. corporate level in that country.
According to Miller, “it looks like China is going to drive the next leg of bitcoin bullish” and therefore it is the “perfect time to (create) the US BTC strategic reserve.” This is what he said in a message published in X.
Miller’s comments stem from the fact that the People’s Bank of China announced a “historic shift toward a more orthodox monetary policy,” which involves a cut in interest rates this year and leave aside all your “quantitative objectives”.
This change guides “prioritizing the role of interest rate adjustments,” according to reported the Financial Times at the beginning of January. By “quantitative objectives,” the People’s Bank of China refers to its policy of guiding Chinese banks on how much they should expand different sectors in their loan portfolios.
A cut in interest rates in China could be a catalyst for an increase in the price of bitcoin. This is because looser monetary policy generally results in greater liquidity in the market. Abundant liquidity tends to encourage investment in risky assets, such as BTC and cryptocurrencies, as investors seek higher returns in a low interest rate environment. Thus, the cryptoasset market could benefit from an additional flow of capital from China.
BTC treasuries in Chinese companies
Along with this change towards a more orthodox monetary policy, China is booming the formation of strategic bitcoin reserves. Several listed Chinese companies have announced the creation of their own treasuries. Until the end of 2024, it was known that companies such as SOS Ltd, Boyaa and Coolpad Group, all from China, have taken steps significant in this sense.
SOS Ltd., a Chinese company known as concept stock, announced a $50 million investment in bitcoin. This move not only reflects a strategy to strengthen its financial position, but also sends a message of confidence towards the future of digital assets.
Accompanying SOS Ltd., other Chinese companies have followed this trend. Boyaa, in its diversification strategy, announced the creation of its own BTC reserve at the end of 2024, causing its share price to skyrocket. Coolpad Group is not far behind, having made a floating profit of approximately $2.2 million through your investment on IBIT, the BTC spot price exchange-traded fund (ETF) issued by asset management giant BlackRock.
Other companies like Guofu Innovation have shown an aggressive approach to the cryptocurrency marketinvesting 36 million Hong Kong dollars in bitcoin in just half a year, which has resulted in its share price increasing by more than 130%.
Similarly, the company NetDragon Holdings has maintained crypto assets in its portfolio for at least three years, obtaining a profit of $51 million, which underlines the growing acceptance and trust in bitcoin as a strategic asset for Chinese companies.
Bitcoin strategic reserves are booming
The issue of strategic bitcoin reserves has increased since 2024, as a result of Trump’s announcement that he would create a reserve of 200,000 BTC for the US, as well as the fact that other nations and US states themselves. have shown interest in this particularas reported by CriptoNoticias.
In addition to the issue of reserves at the nation-state level, there is the case of MicroStrategy, a company founded by bitcoiner Michael Saylor, which carries out an aggressive purchasing strategy that has led it to accumulate almost half a million BTC.
MicroStrategy’s example has been widely followed by companies from different parts of the world and dedicated to different economic sectors, passing through the health sector, research and investments.
It is estimated that this year the US reserve will finally be formed, which plausibly generate a wave of BTC treasuries in countries and companies, with China being a main player in the chess of the Bitcoin ecosystem.
