One trillion yuan from Beijing: how a large-scale liquidity injection could ignite global markets and crypto

Financial markets are preparing for a potential wave of change. The People’s Bank of China took a decisive step in November 2025 by injecting massive liquidity into the economy, including a net infusion of 230 billion yuan through the medium-term lending facility. The scale of this maneuver indicates Beijing’s serious intentions to support economic momentum.

Such a massive increase in the money supply by 1 trillion yuan creates fertile ground for easing financial conditions in global markets. Analysts are already predicting that this policy will facilitate capital outflows from conservative assets into riskier sectors — from stocks and commodities to cryptocurrency assets.

For the cryptocurrency market, this could be a turning point. Experts point to a likely easing of the fear and greed index, which traditionally leads to increased investor interest in Bitcoin and alternative tokens. Even minimal fluctuations within 20 yuan can trigger significant capital flows amid heightened volatility.

The chain reaction from this decision by the People’s Bank of China could extend far beyond Asian markets. The global financial system, increasingly interconnected through synchronized capital flows, will serve as a conduit for this impulse, potentially creating new opportunities for growth in the cryptocurrency sector and a reevaluation of risky assets overall.