Chinese Equities Join Bitcoin Rally as Liquidity Fuels Global Cycle

Chinese equities appear to be re-entering the spotlight, moving in tandem with Bitcoin in a pattern that has defined the past two market cycles, according to analysis from Bloomberg Intelligence’s Jamie Coutts.

Bitcoin and CSI 300 move together

Coutts highlighted that the Shanghai–Shenzhen CSI 300 index is now showing strong upward momentum, echoing Bitcoin’s gains. Historically, the two assets have tended to peak around the same time, suggesting that macro liquidity conditions are influencing both.

This year, China has deployed a fiscal deficit of about 6%, paired with monetary stimulus. While not as massive as the extraordinary COVID-era or Global Financial Crisis interventions, Coutts noted the measures are still significant – particularly compared to the more cautious stance of G7 economies outside the U.S.

Liquidity signals more room to run

Equities’ ability to outperform under these conditions suggests that additional liquidity is still entering the system. For Coutts, this points to “more room for this cycle to run,” implying that Bitcoin may continue to benefit alongside Chinese stocks as stimulus flows ripple across global markets.

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The chart he shared shows the CSI 300 (orange) climbing sharply as Bitcoin (white) also trends higher, reinforcing the historical correlation between the two assets.

Broader implications

If the correlation holds, the simultaneous rally of Chinese equities and Bitcoin could signal a broader phase of risk appetite and liquidity expansion, not just in Asia but globally. For crypto traders, this alignment could be another data point supporting the idea that macro conditions remain favorable for digital assets heading into late 2025.