Leading cryptocurrency Bitcoin started the new week on the rise, with its price rising above $64,800.
While this rise in BTC has increased investors' expectations for Uptober again, Bloomberg said that China's fiscal stimulus efforts and rising Trump expectations could push BTC higher this month.
Disappointment in China’s fiscal stimulus efforts and rising approval ratings for former U.S. President Donald Trump could push Bitcoin higher this month, analysts told Bloomberg.
China is trying to revive its economy but the government did not say how much fiscal stimulus it planned at its eagerly awaited weekend policy briefing, analysts said, adding that the market was not convinced that Chinese authorities were doing enough to beat deflation and that the global rally in Chinese stocks was starting to fade.
Speaking to Bloomberg, Orbit Markets co-founder Caroline Mauron said that markets could continue to perceive a disappointing Chinese stimulus as positive news for Bitcoin and the rally could continue.
“Markets may be interpreting the disappointing stimulus package from China as positive news for Bitcoin, as capital rotation from Bitcoin to Chinese stocks has previously been seen to impact crypto prices.”
It was stated that, apart from Chinese support, the situation regarding the US election results could also mean an increase for BTC. According to data from prediction markets, Republican candidate Donald Trump, who is pro-Bitcoin and cryptocurrency, has a higher chance of winning the upcoming US presidential elections than Vice President Kamala Harris.
At this point, Benjamin Celermajer, a senior executive at digital asset investment management company Magnet Capital, stated that Trump's chances of winning could positively affect the Bitcoin price. Celermajer said, “Good news other than Trump, such as Mt. Gox's delay in the repayment plan, will have more positive effects on the Bitcoin price.”
Bitcoin's Rise Could Begin in the Second Half of October!
Finally, Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, noted that October is generally a bullish month, saying, “historical data shows that Bitcoin and cryptocurrencies generally rise towards the second half of October.”
*This is not investment advice.