China adds 300bn yuan overnight liquidity; Bitcoin near $60,000

China’s central bank carried out 300 billion yuan of overnight reverse repos on June 29, adding roughly $44.1 billion of cash to short-term money markets. The operation ran alongside 157.5 billion yuan of seven-day reverse repos, quoted at a 1.40% rate. The PBOC confirmed the amounts but did not publish an official overnight rate; some market participants estimated the inaugural overnight rate near 1.25%.

The central bank had pre-announced overnight reverse repo operations for June 29 and June 30 using fixed-rate, quantity-bidding mechanics to meet short-term liquidity needs. Officials presented the seven-day reverse repo as the main policy-rate anchor and described overnight operations as a tool to smooth front-end funding stress when required.

An overnight reverse repo injects cash into the banking system for a single day and increases available short-term funding. Market participants can use the size and frequency of such operations to assess where funding pressure is building and how much liquidity the central bank is willing to supply at the front end of the curve.

Bitcoin was trading near $60,000 on June 29, after an approximately 18.25% decline over the prior 30 days. Bitcoin’s market dominance remained above 58% at that time. Reported net outflows from U.S. spot Bitcoin ETFs totaled $444.5 million on June 26. A widely followed market sentiment index registered a reading of 12, classified as Extreme Fear, on June 29.

Some traders and analysts noted that repeated overnight operations at similar or larger sizes would provide clearer evidence that the central bank intends to use the tool regularly. Others described the June 29 injection as potentially a month-end liquidity adjustment, which would carry less weight as a lasting source of external support for risk assets.

Observers also outlined factors that could limit transmission of Chinese liquidity to global crypto markets. Those factors include liquidity remaining confined to domestic funding needs, a stronger U.S. dollar, continued ETF outflows, and weak global risk appetite. Market participants will infer the overnight rate from money-market pricing and the relationship with the seven-day reverse repo until the central bank publishes an official rate.

Market participants said the sequence to watch includes the frequency and size of future overnight operations, any official overnight-rate disclosure, and whether liquidity injections coincide with improving ETF flows and calmer sentiment. Those indicators will inform whether the overnight channel becomes a recurring reference point for traders or is treated as an operational adjustment with limited spillover to risk assets.