Not long after Federal Reserve officials coaxed Bitcoin’s price higher with a rate cut in the U.S., global markets are now digesting what is reportedly the largest stimulus package from the People’s Bank of China since the COVID-19 pandemic.

China’s central bank unleashed a wave of stimulus measures Tuesday, described as a “policy bazooka” in the South China Morning Post. Those measures included slashing the amount of funds that banks are required to hold as reserves and the mortgage rate for existing housing by 50 basis points.

China’s large-scale embrace of stimulus measures caused many crypto fans to speculate whether the country’s move to “print money”—referencing the popular “money printer go brr” meme—would ultimately benefit Bitcoin and crypto prices.

Su Zhu, who founded the defunct crypto hedge fund Three Arrows Capital, said on Twitter (aka X) late Monday that the “China stimulus cycle begins,” suggesting that measures enacted by China’s central bank would be supportive of digital asset prices.

Since Zhu’s post, the price of Bitcoin has ticked up only slightly, rising from $63,000 to about $63,200. On Tuesday, the asset’s price rose as high as $64,500 before giving up those gains.

The central bank’s sudden easing is expected to boost global liquidity, which typically bodes well for Bitcoin’s price, according to research commissioned by crypto analyst Lyn Alden. Released this month, the research piece found that Bitcoin’s price “has exhibited a strong correlation with global liquidity” over the past few years.

The sentiment was echoed by Jake Ostrovskis, an OTC trader at the market maker Wintermute, who wrote in a market update that the central bank’s moves add “a significant amount of liquidity into global markets–supporting conditions into year end.”

At the same time, the People’s Bank of China took several other steps to boost the region’s economy, which has faced a pronounced slowdown in areas such as consumer spending and housing. That included supporting Chinese stocks with 800 billion yuan ($113 billion) and releasing plans for a so-called stock stabilization fund.

While the CSI 300, a Chinese stock market index, has risen 7% over the past 5 trading days, the stimulus package may not be enough to help China reverse trends of souring consumer confidence and demand, according to Opening Bell Daily’s Phil Rosen.

“The stimulus package unveiled Tuesday resembles more of a pellet gun than a bazooka,” he wrote in a Wednesday newsletter. “It is big news—but unfortunately for Chinese consumers and their local property markets, not big enough.”

The Chinese central bank’s stimulus blitz follows the Federal Reserve’s first rate cut in four years, which analysts viewed as a catalyst for so-called risk assets like stocks and crypto.

While rising global liquidity typically benefits risk assets, Bitcoin’s reaction could prove muted, Brian Rudick, a senior strategist at the market maker GSR, told Decrypt. That’s because crypto trading has been banned in China since 2021.

“When liquidity rises and interest rates fall, people move out on the risk spectrum,” he said. “People have access to cheaper fiat currency in China, but they don’t go out and buy Bitcoin because of it.”

Earlier this year, Hong Kong’s securities regulator approved three spot Bitcoin ETFs in the region, endorsing offerings from China AMC, Harvest, and Bosera HashKey. Though Hong Kong’s financial markets are largely independent from China’s, and the products are off-limits for mainland investors, the ETFs saw some inflows earlier this week.

One Monday, China AMC’s spot Bitcoin ETF saw inflows of around 16 Bitcoin, valued at approximately $1 million. On Tuesday, inflows were flat, according to CoinGlass data.

Edited by Andrew Hayward

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