Bitcoin reached a seven-day high on Sunday evening, rising 2.5% to $64,300, following China’s announcement of economic stimulus measures over the weekend. The world’s second-largest economy pledged to “significantly increase” its debt to support its weakening economy, though specific details on the stimulus package remain undisclosed.
Asian markets showed mixed reactions to China’s move. The Shanghai Composite saw a 1.6% gain, while Hong Kong’s Hang Seng Index fell by 0.4%. Japan’s Nikkei 225 rose 0.57%, driven by tech stock gains, while markets in South Korea and Australia experienced minor fluctuations.
Bitcoin’s rise follows last month’s surge past $65,000 after China injected $113 billion into its stock markets, alongside easing bank reserve requirements and regulations for second-home purchases. Over the past month, the Shanghai Composite has risen more than 20%, but it still lags behind the S&P 500, which has grown by 34.3% over the past year.
Experts believe that China’s stimulus, combined with shifting U.S. macroeconomic factors and the upcoming U.S. presidential election, will continue to provide tailwinds for Bitcoin throughout the year. Strong U.S. payroll data for September has sparked concerns about potential delays in the Federal Reserve’s planned rate cuts, which may affect inflationary pressures.
Despite these concerns, Pav Hundal, lead market analyst at crypto exchange Swyftx, remarked, “We’re now past the early October market pullback, and the macro environment looks positive despite weak domestic demand in China.”
Credit: Decrypt (Text Excluding Headline)