China is about to release an unprecedented stimulus package worth $1.4 trillion, aiming to jumpstart its fragile economy. Unlike previous stimulus measures, this package is 10 times the size of China’s past sovereign debt issues, making it the largest fiscal stimulus in the country’s history. For the crypto community, this could mean a huge injection of liquidity, potentially fueling the next altcoin surge.

Historically, each time China expanded its money supply, crypto markets soared. A look back at December 2023 to March 2024, when Chinese monetary stimulus was at a high, shows that coins like Ethereum and Cardano saw prices double. Solana’s price surged from $59 to over $200, and Cardano jumped from 38 cents to 77 cents. With China’s current package set to dwarf past efforts, we could see similar—or greater—gains across altcoins, especially those within the Chinese ecosystem.

Among the Chinese crypto projects, Conflux (CFX) stands out. In the last significant stimulus event, Conflux outperformed major altcoins, delivering over a 3x return during the same period. While its price now sits at about 15 cents, Conflux’s previous high of 51 cents suggests potential for a powerful return. With the Chinese government’s support of blockchain technology and the expected liquidity boost, a 3x return for Conflux remains within reach.

With the National People’s Congress set to vote on this package on November 8, crypto investors are eyeing massive implications for digital assets. Here’s what could happen if the package is approved:

1. Increased Liquidity Across Markets: This stimulus package is likely to inject new capital across various markets, including crypto, which could drive demand for altcoins.

2. Rise in Chinese-Oriented Cryptos: Projects like Conflux, with a local foothold and connection to China’s blockchain strategy, may receive the biggest gains, especially if China’s stimulus focuses on tech and innovation.

3. Boost to Bitcoin and Global Crypto Assets: The anticipated rise in demand for crypto assets could also lift Bitcoin and other major coins, as Chinese and international investors look for store-of-value assets amid rising liquidity.

4. Favorable Market Conditions for Altcoins: Major altcoins like Ethereum, Cardano, and Solana could see substantial growth based on the proven correlation between increased money supply and crypto market performance.