Bitcoin surpassed $97,000 on Wednesday before pulling back to around $96,000 following announcements in China and speculations that the US Federal Reserve might be considering a return to quantitative easing. This sudden movement, just ahead of an important Federal Open Market Committee (FOMC) meeting, has triggered a rush among traders to reconsider the global economic outlook.

China revealed plans to inject $138 billion in liquidity as trade negotiations reignited positive market sentiment. The announcement included interest rate cuts by the People's Bank of China (PBOC), reducing the reserve requirement ratio and policy interest rate. Additional support measures were introduced, such as a re-lending tool for elderly care and consumer loans.

The timing of China's stimulus package was strategic, coinciding with upcoming trade discussions with the US. Market reactions were swift, with S&P 500 futures and Bitcoin prices experiencing significant spikes. Bitcoin was trading at $96,497 with a 2.16% increase, amid uncertainty as traders prepared for the FOMC meeting.

Simultaneously, the Fed's recent bond purchases have raised concerns of potential quantitative easing. The Fed quietly acquiring Treasury notes in large amounts suggests a gradual move towards quantitative easing, which has been seen as bullish for the crypto market by experts like Arthur Hayes.

The uncertainty in the financial markets is also evident in the surge of gold prices, reflecting investor unease amidst economic instability. Investors are eagerly waiting for the Fed Chair's statements for guidance, which could potentially impact Bitcoin's price movement.