Bitcoin has surpassed $64,000, buoyed by positive market sentiment stemming from China’s economic stimulus efforts. The cryptocurrency is trading at $64,100 as of 2 p.m., up 2% in the past 24 hours.
Bitcoin Nears $64,000 as Chinese Stocks Rebound on Stimulus Optimism
“A key driver of this momentum appears to be China’s recently announced stimulus package, which has supported market sentiment,” said Min Jung, an analyst at Presto Research.
China's Finance Minister Lan Fo'an announced plans to roll out a fiscal stimulus package to revive the country's economy, but the exact figures were not disclosed. The Shanghai Composite Index responded positively, rising 2.12% on the day.
“Bitcoin prices have climbed above $64,000 as Chinese stocks rebounded from weekend disappointments, fueling a ‘buy everything’ sentiment in the markets,” said Augustine Fan, Head of Analysis at SOFA.org.
Market Rebounds on US Inflation Concerns
Bitcoin's rally follows a brief decline last Thursday, when prices fell to $60,500 due to higher-than-expected U.S. consumer and producer price index data.
However, markets appeared to regain their composure after initially reacting to the inflation news.
“Markets were initially confused by the data effect but ultimately concluded that the core inflation trend remained intact and the curve steepening move remained in place,” Fan added.
The broader cryptocurrency market also posted gains, with Ethereum up 3.24% to $2,539, while Solana was up 4.67% to trade above $152.
While October has historically been a bullish month for Bitcoin, analysts have advised caution, citing numerous uncertainties.
*This is not investment advice.