Bitcoin surged past $64,000 in Monday morning trading (October 14, 2024, 10:00 AM WIB), driven by a rebound in China’s stock market and optimism surrounding the country’s newly announced fiscal stimulus package.
This positive movement for Bitcoin comes after a steady weekend, during which its price hovered between $62,500 and $63,000, signaling an improvement in market sentiment.
Impact of China’s Stimulus on Bitcoin’s Rise
The announcement of China’s fiscal stimulus has provided a significant boost to the crypto market. For weeks, the global economy and stock market uncertainty had weighed on investor sentiment, but China’s move is now seen as a positive catalyst. Although China’s Finance Minister, Lan Fo’an, has yet to release specific figures for the stimulus, the prospect of China’s economic recovery has improved global risk sentiment. The Shanghai Composite Index, one of China’s main stock indices, jumped +1.65% within hours of the stimulus announcement. Investors have resumed buying riskier assets like Bitcoin, hoping the fiscal stimulus will accelerate economic recovery, increase liquidity, and open up new investment opportunities in the market.
“The rebound in Chinese stocks has fueled risk-on sentiment, leading the market into a ‘buy everything’ mode,” said Augustine Fan, Head of Insights at SOFA.org. Bitcoin’s rise demonstrates that crypto is increasingly viewed as a high-risk, high-reward alternative amid improvements in traditional markets.
Additionally, the stability of the crypto market over recent weeks, with Bitcoin holding steady at the $62,500 to $63,000 range, has provided a solid foundation for this upward movement. Fan also noted that technical factors played a crucial role, saying, “This morning’s rise above $64,000 was not only driven by market sentiment but also by a confirmation of resistance levels, which had previously been an important psychological threshold.”
Several major altcoins, including Ethereum and Solana, also rose in tandem with Bitcoin, reinforcing the bullish trend. Ethereum jumped +3.24% to $2,540, while Solana rose +4.67%, breaking above the $150 mark. This trend indicates that the optimism in the crypto market extends beyond Bitcoin to other crypto assets as well.
Bitcoin Amid Macroeconomic Uncertainty
Although October is typically a strong month for Bitcoin, macroeconomic uncertainty still looms. Min Jung, an analyst from Presto Research, highlighted the importance of the forthcoming release of China’s Q3 GDP data, along with the financial reports of major U.S. companies. banks this week will be key factors influencing market direction. Additionally, geopolitical risks in the Middle East could spark global uncertainty and impact the prices of risky assets, including cryptocurrencies.
Jung remarked, “The escalating conflict in the Middle East could have a global impact on high-risk assets.”. “Furthermore, with less than 30 days until the U.S. presidential election, political uncertainty is another factor to watch.”
The U.S. presidential election, scheduled for November 5, 2024, adds to the complexity of the situation. On decentralized betting platform Polymarket, Donald Trump, known for his support of crypto, leads the polls with 54%, while Vice President Kamala Harris is in second place with 45.4%. These political developments could potentially influence crypto market sentiment in the coming weeks.
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