China’s LPR Cut: Potential Ripple Effect Across Global Crypto Markets

China’s central bank has lowered benchmark lending rates, potentially setting off a chain reaction throughout global markets, particularly the cryptocurrency sector. The People’s Bank of China announced a 10 basis point cut to both one-year and five-year Loan Prime Rates (LPRs). This action is aimed at stimulating the economy and easing borrowing costs for businesses and individuals. Analysts expect these changes will boost risk appetite globally, leading to increased market activity across equities, cryptocurrency markets, and potentially impacting DeFi platforms with a large Chinese user base.