China's stimulus package is expected to be the reason for the rise in Bitcoin and altcoins. Many analysts think that China's economic stimulus can revitalize the Bitcoin and cryptocurrency markets.
Bitfinex analysts said that China’s upcoming fiscal stimulus, expected to be announced on October 12, could positively impact Bitcoin and the broader cryptocurrency market, The Block reported.
Noting that China’s fiscal stimulus plans have become a focal point even for Bitcoin and cryptocurrencies, Bitfinex analysts said that a little more liquidity could benefit riskier assets like BTC.
“We expect the significant amount of fresh liquidity injected into the market to have a positive impact on all risk assets, including cryptocurrencies.
The full scale and scope of China’s stimulus packages are still unclear and could surprise the market. We expect increased market volatility, especially if China’s stimulus is larger than anticipated.
Because the expected effects of the incentives have not yet been fully priced in.”
China's Finance Minister Lan Fo'an, who has recently announced a series of economic stimulus packages, is expected to announce a new stimulus package at a press conference to be held tomorrow morning.
Three Key Catalysts That Could Support Bitcoin!
ETC Group analysts also announced their Bitcoin predictions. At this point, ETC Group analysts stated that the global money supply has reached an all-time high, indicating that this has historically indicated an upward trend for BTC.
Analysts also outlined three key catalysts that could support Bitcoin’s rally in the coming months: “historical Bitcoin halving cycle dynamics, global economic recovery, and the upcoming US presidential election.”
ETC analysts announced their Bitcoin expectations in case of Trump and Harris win:
“If the US election were held today, a Trump win would mean a roughly 10.7% increase in the price of Bitcoin, while a Harris win would result in a 10.5% drop based on historical sensitivities.
However, it should also be noted that Bitcoin performed well in past US presidential elections in 2012, 2016 and 2020, regardless of the winning party.”
*This is not investment advice.