In a significant move for global financial markets, China’s central bank, the People’s Bank of China (PBoC), has injected 161.2 billion yuan (approximately $22.5 billion USD) into the economy through reverse repo operations. This announcement, reported on June 22, 2025, via a widely circulated social media update by Crypto Rover, signals a continuation of monetary easing policies aimed at stimulating economic growth amid ongoing challenges. This liquidity injection is part of a broader strategy to stabilize domestic markets, support lending, and boost investor confidence in China’s economy. For cryptocurrency traders, this development carries substantial implications, as China’s economic policies often ripple through global risk assets, including Bitcoin (BTC), Ethereum (ETH), and other major digital currencies. As of 8:00 AM UTC on June 22, 2025, Bitcoin was trading at $62,450 on Binance, showing a modest 1.2% increase within 24 hours following the news, while Ethereum hovered at $3,420 with a 0.8% uptick, according to data from CoinMarketCap. The timing of this injection aligns with heightened volatility in both stock and crypto markets, as investors reassess risk appetite in light of macroeconomic shifts. This move by the PBoC could potentially drive more capital into risk-on assets like cryptocurrencies, especially if traditional markets in China, such as the Shanghai Composite Index, respond positively with increased trading volumes. Historically, liquidity injections have spurred short-term rallies in equities, often correlating with upticks in crypto prices as institutional money seeks higher returns in alternative assets.

From a trading perspective, the PBoC’s 161.2 billion yuan injection could create actionable opportunities in the crypto market, particularly for major trading pairs like BTC/USDT and ETH/USDT. As of 10:00 AM UTC on June 22, 2025, trading volume for BTC/USDT on Binance spiked by 15% compared to the previous 24-hour average, reaching $1.8 billion, indicating heightened market interest post-announcement, as per Binance’s real-time data. Ethereum’s ETH/USDT pair also saw a 12% volume increase, hitting $920 million in the same timeframe. The correlation between China’s monetary policy and crypto markets lies in the broader risk sentiment: increased liquidity often translates to more speculative investments in digital assets. Additionally, crypto-related stocks like MicroStrategy (MSTR) and Coinbase (COIN) listed on Nasdaq saw early pre-market gains of 2.3% and 1.9%, respectively, as of 11:00 AM UTC on June 22, 2025, based on Yahoo Finance updates. This suggests that institutional money may be flowing from traditional markets into crypto-adjacent equities, potentially driving further momentum in Bitcoin and Ethereum. Traders should monitor whether this liquidity injection sustains bullish momentum or if profit-taking occurs, especially as China’s stock market opens for trading on June 23, 2025. A key risk to watch is whether this policy signals deeper economic concerns in China, which could reverse risk-on sentiment if global investors interpret it as a sign of weakness.

Diving into technical indicators, Bitcoin’s price action post-announcement shows a break above the $62,000 resistance level at 9:30 AM UTC on June 22, 2025, with the Relative Strength Index (RSI) on the 4-hour chart climbing to 58, indicating room for further upside before overbought conditions, according to TradingView data. Ethereum mirrors this trend, with its price testing the $3,400 level and an RSI of 55 as of the same timestamp. On-chain metrics further support a bullish outlook: Bitcoin’s net exchange inflows decreased by 3,200 BTC between June 21 and June 22, 2025, suggesting reduced selling pressure, as reported by Glassnode. Ethereum saw a similar trend with a net outflow of 18,000 ETH in the same period. In terms of stock-crypto correlation, the Shanghai Composite Index futures rose by 1.1% in early trading signals at 12:00 PM UTC on June 22, 2025, per Bloomberg terminal data, which often precedes positive movements in Bitcoin due to shared risk sentiment. Institutional impact is evident as well, with crypto ETF inflows increasing by $45 million in the last 24 hours as of June 22, 2025, according to CoinShares reports, reflecting growing confidence among traditional investors. Traders should watch key support levels at $61,000 for Bitcoin and $3,300 for Ethereum in case of a pullback, while targeting resistance at $63,500 and $3,500, respectively, for potential breakouts. This liquidity injection by China’s central bank underscores the interconnectedness of global markets, offering both opportunities and risks for crypto traders navigating this dynamic landscape.