China M1 Data Misinterpreted: No Liquidity Injection, Say Analysts
- A viral chart showing a 67.59% jump in China’s M1 money supply led to speculation.
- Analysts clarify that the spike resulted from a change in measurement methodology.
- Benjamin Cowen criticizes misinformation and lack of critical thinking on Crypto Twitter.
A widely shared chart showing a sudden spike in China’s M1 money supply has fueled speculation across Crypto Twitter. Many interpreted the data as evidence of an unprecedented liquidity injection.
However, analysts, including Benjamin Cowen, have clarified that the surge is due to a reclassification of how the metric is calculated, not an actual increase in circulating money.
Viral Chart Sparks Speculation
The chart, sourced from TradingView, shows China’s M1 money supply jumping from approximately 67 trillion yuan to 112.45 trillion yuan virtually overnight, an apparent surge of 67.59%.
This led to speculation that the Chinese government had injected massive liquidity into the financial system. Some even interpreted this could potentially impact global markets, including cryptocurrencies.
Related: Financial experts Raoul Pal, Howell Discuss Liquidity Cycles and Wealth Transfer: Bitcoin, G…
The post China M1 Data Misinterpreted: No Liquidity Injection, Say Analysts appeared first on Coin Edition.
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China M1 Data Misinterpreted: No Liquidity Injection, Say Analysts
- A viral chart showing a 67.59% jump in China’s M1 money supply led to speculation.
- Analysts clarify that the spike resulted from a change in measurement methodology.
- Benjamin Cowen criticizes misinformation and lack of critical thinking on Crypto Twitter.
A widely shared chart showing a sudden spike in China’s M1 money supply has fueled speculation across Crypto Twitter. Many interpreted the data as evidence of an unprecedented liquidity injection.
However, analysts, including Benjamin Cowen, have clarified that the surge is due to a reclassification of how the metric is calculated, not an actual increase in circulating money.
Viral Chart Sparks Speculation
The chart, sourced from TradingView, shows China’s M1 money supply jumping from approximately 67 trillion yuan to 112.45 trillion yuan virtually overnight, an apparent surge of 67.59%.
This led to speculation that the Chinese government had injected massive liquidity into the financial system. Some even interpreted this could potentially impact global markets, including cryptocurrencies.
Related: Financial experts Raoul Pal, Howell Discuss Liquidity Cycles and Wealth Transfer: Bitcoin, G…
The post China M1 Data Misinterpreted: No Liquidity Injection, Say Analysts appeared first on Coin Edition.
Read More
BNB Corporate Treasury to Be Created by a New Firm Raising $100 Million