PBOC Liquidity Injection Tops $50 Billion as Bitcoin Struggles Near $63K

China’s central bank injected fresh liquidity into the financial system on Friday, but the move failed to provide an immediate boost to Bitcoin.

The People’s Bank of China (PBOC) used overnight reverse repos for the first time in the middle of a month, injecting roughly 350 billion yuan. The facility allows the central bank to lend money to commercial banks for one day, with repayment due the following morning.

More liquidity is already scheduled. The PBOC plans additional operations from August 17 through August 19, with each day capped at 600 billion yuan, or approximately $88 billion. Across the four scheduled sessions, the maximum available liquidity could reach 2.4 trillion yuan.

The operations come as Beijing relies increasingly on liquidity management rather than additional interest-rate cuts. China’s one-year benchmark lending rate has remained at a record-low 3% since May 2025.

China’s bond market reflected the easier domestic funding environment. The 10-year government bond yield fell to around 1.68%, its lowest level since July 2025. In contrast, the US 10-year Treasury yield remained near 4.63%, while Japan’s 10-year yield was around 2.87%. Elevated global borrowing costs continue to pressure Bitcoin and other risk assets.

However, PBOC liquidity injections have not produced immediate Bitcoin rallies. When China introduced the overnight reverse repo tool on June 29 with a 300 billion yuan injection, BTC fell 2.26% to $58,504 by the following morning. Bitcoin has nevertheless gained roughly 7% since that operation.

Analysts view the latest PBOC move primarily as an effort to offset liquidity pressure caused by mid-month tax payments rather than aggressive monetary easing. China’s capital controls and domestic crypto trading ban also limit the direct flow of banking liquidity into Bitcoin.

Any impact on BTC is therefore more likely to emerge indirectly through global risk sentiment, currency markets and funding conditions.

With Bitcoin trading near $62,800, investors will now watch the August 17-19 PBOC liquidity injections alongside China’s July economic data for signs that improving funding conditions could strengthen appetite for crypto and other risk assets.