According to AltcoinGordon, China's rapidly growing money supply, as highlighted in recent economic data, could have significant trading implications once this liquidity is deployed into global markets. Historically, increases in China's M2 money supply have correlated with heightened risk-on sentiment in cryptocurrencies, particularly Bitcoin and major altcoins, due to increased capital outflows and global liquidity (source: AltcoinGordon on Twitter, May 10, 2025). Traders should monitor for shifts in Chinese monetary policy and cross-border capital movements, as these factors may drive volatility and provide entry opportunities in the crypto market.

According to André Dragosch, Chinese monetary and credit policy tends to ease counter-cyclically to US business cycles. In times of US recession, the US Dollar Index (DXY) tends to decrease, increasing the probability of Chinese reflation. This scenario is mostly bullish for Bitcoin due to anticipated Dollar depreciation and global money supply expansion (source: André Dragosch, Twitter).