I would have thought the same., although the Chinese and Hong Kong markets ended the day +4%.

For Bitcoin I'd wait until the US begins its cash trading day before casting judgement. Check price action in 12 hours from now. That'll provide a better barometer of what, if any, impact might have come from the move by the PBoC

As for a "solution" to the deflation you mentioned, well, it has been my ongoing outlook that deflation is what Chinese policy makers are will to accept to aggressively deleverage its economy.

Furthermore, I view it as critical that all we have out of China today is monetary policy loosening. Basically a liquidity pump. There's been virtually no fiscal support out of Beijing for a long while. Moving on fiscal policy is the last bullet in the chamber so to speak. Beijing doesn't want to use that bullet. Unclear if they have a choice.

Thanks for asking.