Bitcoin News Today: China's $340 Billion Stimulus Sparks Altcoin Surge and Bitcoin Rally

China’s National Development and Reform Commission, under the leadership of Chairman Zheng Shanjie, announced a $340 billion economic stimulus plan in May 2025, signaling a major policy shift that is reshaping global financial markets and influencing the crypto sector [1]. The package includes targeted support for growth-driven industries and adjustments to monetary policy, with the People's Bank of China confirming reductions in reserve ratios and policy rates to boost liquidity [1]. These moves are expected to enhance capital flows, benefiting not only traditional assets but also cryptocurrencies.

The market response has been encouraging, with Bitcoin nearing $100,000 mid-2025 amid easing monetary policies from major central banks, including the U.S. Federal Reserve and the European Central Bank [1]. Arthur Hayes, a prominent figure in the crypto space, has highlighted the significance of these developments, noting that the combined fiscal and monetary stimulus could trigger a "glorious" year for Bitcoin [1]. He has also pointed to the possibility of a broader altcoin surge, akin to the "DeFi Summer" of 2020, which followed previous rounds of economic support.

Indeed, the current environment appears to be ushering in a potential "altseason," a period characterized by strong performance from alternative cryptocurrencies such as Ethereum, Solana, and Cardano, rather than Bitcoin alone [1]. This trend reflects a shift in investor behavior, with market participants moving toward higher-risk, higher-reward assets as macroeconomic conditions improve. The increased liquidity from both China’s stimulus and Western central banks has further amplified this trend, encouraging retail and institutional investors to take a more aggressive stance in the crypto market.

Market observers have noted a divergence in performance between Bitcoin and altcoins, with the latter showing more pronounced upward momentum [1]. This divergence is attributed to improved risk appetite and a perception of undervaluation in the altcoin segment. Moreover, the broader market optimism is evident in rising equity prices and increased activity in DeFi and Web3 communities, reflecting a renewed interest in blockchain innovation.

However, analysts caution that the current rally is not without risks. Historical patterns show that altseasons are often marked by volatility, sharp price corrections, and rapid shifts in capital flows [1]. Investors are closely monitoring Chinese economic data and policy updates for further clarity on the stimulus’ long-term impact. If the broader economic recovery continues, it could extend the favorable conditions for altcoins and crypto adoption. For now, the interplay between traditional and crypto markets remains a key factor shaping the investment landscape.

Source: [1] Altseason's next step depends on China stimulus, investors ... (https://www.coinlive.com/news-flash/873009)