China’s State Council Urges Moderately Loose Monetary Policy
- State Council proposes monetary policy shift for economic recovery.
- Aims for supportive financial environment in China.
- Potential impact on risk assets including cryptocurrencies.
China’s State Council advocates for a moderately loose monetary policy to propel economic recovery. This approach focuses on detailed implementation, aiming to enhance financial stability and expand positive growth momentum through supportive monetary measures.
The State Council of China has called for a detailed implementation of a moderately loose monetary policy to support economic recovery, as reported during the NPC Standing Committee Meeting on October 26, 2025.
The moderate policy shift may influence global liquidity and investor sentiment, affecting risk assets such as cryptocurrencies indirectly. No immediate changes in regulatory stances noted as of the latest official releases .
The Chinese State Council’s recent report proposed the introduction of a moderately loose monetary policy to stimulate economic growth. Discussed at the NPC Standing Committee, this approach appears to diverge from previous, more cautious strategies.
Governor Pan Gongsheng of the People’s Bank of China is pivotal in executing this policy move. The proposal includes enhancing financial supervision and liquidity, aiming to stabilize and invigorate the domestic economy during recovery.
“Implement a moderately loose monetary policy in detail to create a suitable monetary and financial environment to consolidate and expand the positive momentum of economic recovery…”
— State Council Report, NPC Standing Committee
Market analysts anticipate that this policy could improve risk sentiment across regional financial markets. The policy’s emphasis on international RMB liquidity might yield positivity, though direct effects on cryptocurrencies remain indirect and historically ebbed with liquidity tides.
While there’s no evidence of allocated funds toward crypto, favorable conditions for risk markets could see a short-term boost. This potential surge ties to historical parallels when China’s monetary easing coincided with increased investment in various assets, including cryptocurrencies.
Experts cite historical instances when China’s policy shifts influenced global market investments, particularly in 2015 and 2020. If repeated, this could see a resurgence in global investment activities, particularly in high-volatility sectors like cryptocurrencies. Historical patterns suggest that China’s monetary adjustments can subtly alter international financial landscapes.
State Council’s new monetary policy impacts risk assets, including cryptocurrencies
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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1. Technology stocks fell sharply as investor interest shifted toward energy and selected defensive assets. From October 10 to 16, the Nasdaq 100 declined 5.49% and the S&P 500 fell 1.95%, while the Dow gained 0.67% and WTI crude rose 10.41%. BTC, ETH, and SOL declined 1.27%, 2.65%, and 4.44%, respectively. This week's technology earnings will be an important test of whether revenue growth, margins, and cash flow can justify current valuations. Better-than-expected results could help stabilize markets in the near term. 2. Crypto continues to see pockets of strong activity, but a broad-based altcoin season has yet to materialize. CoinMarketCap's (CMC) Altcoin Season Index stood at 54 as of the October 18 UTC daily observation, below the altcoin-season threshold of 75, while BTC dominance rose to 60.08%. Our proxy leverage ratio fluctuated between 4.00 and 4.07 during the week, showing no sustained increase and suggesting limited appetite for additional leverage. Meanwhile, as major exchanges expand access to traditional financial assets, the recent sell-off in AI-related equities could attract short-term speculative capital away from crypto. Such capital rotation could make it more difficult for a new altcoin season to take hold. 3. Papertrade's loss-to-mine model has generated significant interest across the crypto community. The protocol combines high-leverage derivatives trading with zero slippage and a mechanism that rewards trading losses with PAPER tokens. Across the eight complete UTC days from October 10 to 17, cumulative reported revenue reached approximately $56.08 million, including $51.90 million distributed to token holders. With growing participation from key opinion leaders (KOLs), Papertrade has reportedly ranked among the top three platforms by profitability in the broader market recently. Assets to watch: BTC, ETH, SOL, ARB, OP, SKHYNIX, SKHY, META, TSLA, LRCX, and SPCX. Key research priorities this week: Cash flow performance in technology earnings; the relative discount and holding costs of the two SK Hynix contracts; and U.S. initial jobless claims and PMI data. Weekly market data cover the period through October 16, while research information was verified through October 18. Observation periods are specified separately for each chart.

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