Bitcoin Price Trend Shows Strong Correlation with People’s Bank of China Balance Sheet

A recent analysis has revealed a significant correlation between the price trend of Bitcoin (BTC) over the past 30 days and the balance sheet of the People’s Bank of China. According to data from TradingView, the 30-day correlation coefficient between the two was a positive 0.66, indicating a strong correlation.

The People’s Bank of China currently holds approximately $6.22 trillion worth of U.S. dollars on its balance sheet. In an effort to stimulate the economy, China has been implementing a massive economic stimulus package, often referred to as a ‘bazooka’ level package. This move has led to a significant increase in the Chinese stock market, with a 12% surge over just four days.

Market analysts believe that this economic stimulus package could have a positive impact on the price of Bitcoin. Nick Luck, a market analyst, noted that the package may lead to increased investment in blockchain companies, as well as greater exposure to overseas virtual asset-related investments.