Deniz 
Though it had little effect on the bitcoin market, which stayed quite flat over the previous 24 hours, China’s large monetary stimulus program, revealed on Tuesday, gave hope to European and American share markets.
But given China’s aggressive monetary policies and the recent 50-basis-point rate reduction by the U.S. Federal Reserve, QCP Capital analysts observed that worldwide trend of easing that would support risk assets, including cryptocurrencies, in the near future seems evident.
In the framework of this relaxation, QCP Capital underlined a mounting bullish attitude regarding ether in the derivatives market. They also saw a change in ether options, whereby the front-end skew switched from puts to calls to signal expected upward price movement. “Ether implied volatility is also trading 9% higher than bitcoin, suggesting both upside sentiment and more expected volatility,” they said.
Macroeconomically, China’s stimulus policies—which aimed to lower borrowing rates and increase economic activity—included lowering the reserve requirements for banks, so enabling them to lend more, and lowering interest rates on current mortgages by 0.5 percentage points. Steps to relax borrowing limits to invest in equity supplemented these efforts, sending the Shanghai Composite Index skyward by more than 4% on Tuesday to close at 2,863.13 points.
Pan Gongsheng, governor of the People’s Bank of China (PBoC), underlined that these initiatives seek to boost domestic demand and financial markets, so strengthening investor confidence. Global commodities prices—including copper and Brent crude—increased as a result; Brent crude rose more than 1.4% to about $74.28 a barrel at the time of writing.
As China’s stimulus drove a general risk-on attitude, European and U.S. equities surged, and sectors connected to the Chinese economy saw large increases. The FTSE 100 closed down 0.28% in London; the STOXX Europe 600 climbed 0.65%. Early trading showed the S&P 500 gaining 0.21%, the Dow Jones moving 0.01%, and the Nasdaq rising 0.55%.
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