- Bitcoin climbed to $64,300 following China’s new economic stimulus measures.
- Other cryptocurrencies, like Ethereum and Solana, also saw gains.
Bitcoin has risen to a seven-day high, reaching $64,300, following China’s announcement of new economic stimulus measures over the weekend. The cryptocurrency traded up by 2.5% due to positive sentiments from investors due to China’s plans to increase its debt to boost the economy.
After declining slightly to below $60,000 earlier last week, Bitcoin has had a strong comeback. This upward movement came despite increased market volatility and concerns over rising US consumer price index (CPI) data, initially dragging Bitcoin prices down.
However, long-term investors, especially the Bitcoin whales, have not stopped seizing the opportunities from these market declines. Since March, these large investors have bought 1.5 million Bitcoins, roughly 7% of all the Bitcoins in circulation. This accumulation has helped in the recovery of Bitcoin’s price.
Besides whale action, institutional interest in Bitcoin has not waned either. Bitcoin ETFs have recently surpassed 5% of the total supply of Bitcoin. This has also helped increase the market’s confidence, as big firms such as BlackRock and Metaplanet have come in to support the institution.
This is not the first time China’s economic decisions have impacted the price of Bitcoin. Bitcoin hit $65,000 in late September after China pumped $113 billion into the economy and relaxed several banking measures, including reducing reserve ratios.
Altcoins Follow Bitcoin’s Lead
This rally in Bitcoin has also led to gains across the other cryptocurrencies in the market. The prices of prominent digital currencies like Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) also saw significant increases. The collective rally indicates increased adoption of cryptos as a product of macroeconomic changes.
Despite the fact that October has recently been relatively calm for Bitcoin and other cryptocurrencies, experts still have high expectations for further growth. Analysts have been debating when the much-awaited ‘Uptober’ will come into play, with October having been good to Bitcoin investors nine out of the last eleven years.
Bitcoiner Kyle Chassé stated in a post on X that “the tides are shifting” indicating that the price of Bitcoin could be set to rise in the near future. Chassé expressed confidence in the market, stating, “The next big rally isn’t just a possibility—it’s a reality waiting to unfold.”
China Increases Government Debt to Boost Economy
The recent happenings in the market can be attributed to China’s decision to increase its government debt issuance. In a press conference, China’s finance minister, Lan Fo’an, confirmed that the government will continue to use what it calls “counter-cyclical measures” to support the economy.
However, he didn’t provide clear figures, which raised questions among investors regarding the amount and the nature of the proposed stimulus. While Lan focused on the working on local government debt, helping low-income families, and stimulating the property market, the lack of specific figures raises questions about the success of the future policies.
These measures are viewed as a response to the economic slowdown identified at the September Politburo meeting in China.