Bitcoin Slips Over 13% in a Week: Why China Could Be the Key to Its Next Rally

Bitcoin (BTC) continues to face market headwinds, with the price sliding 13.3% over the past week and losing key support levels.

However, recent analysis suggests that China’s expanding liquidity — rather than that of the United States — could soon emerge as the driving force behind Bitcoin’s next major rally.

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Bitcoin Faces Pressure, but China’s Expanding Liquidity Could Fuel the Next Rally

BeInCrypto reported that last week’s crypto market crash saw BTC dip to a low of around $107,000. While a modest rebound followed, the momentum has died down once again.

In fact, over the past 24 hours, the largest cryptocurrency has depreciated 4.85%. At the time of writing, it traded at $105,317.

Bitcoin (BTC) Price Performance. Source: BeInCrypto Markets

At the same time, the US M2 money supply has remained sideways for several weeks. Historically, Bitcoin’s price has shown a correlation with M2 growth — when liquidity expands, BTC often benefits. However, with the current stagnation, the short-term outlook for Bitcoin looks subdued.

Despite this, Joao Wedson, founder of Alphractal, suggested that Bitcoin could gain momentum from the East, where China’s liquidity continues to surge. He noted that China’s M2 money supply has ballooned to more than twice the size of the US equivalent, widening the gap to an astonishing $24.9 trillion.

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