As a seasoned researcher with over two decades of experience in the financial markets, I must admit that watching the crypto market dance to the tune of global economic policies is nothing short of exhilarating. The recent Chinese stimulus announcement has once again proven to be a catalyst for growth in the Bitcoin and altcoin markets.
Bitcoin (BTC) and the wider cryptocurrency sector are displaying resilience again, surging by approximately 3% amidst a robust Chinese economic stimulus plan. Currently, BTC’s price stands at around $62,700, marking an increase of 3.16%, while its market capitalization amounts to a staggering $1,239 trillion. Earlier today, China increased its debt limit and implemented economy-stimulating measures, injecting more liquidity into the financial system.
Bitcoin and Altcoins Rally In Strong Reversal
After dipping below $60,000 earlier this week due to increasing US Consumer Price Index figures, the price of Bitcoin has rebounded powerfully and is now nearing $63,000. Despite the current market fluctuations, substantial Bitcoin investors (referred to as ‘whales’) have persistently been buying Bitcoin at every available chance.
Over the course of this year starting from March, whales (large-scale Bitcoin investors) have amassed a significant amount of about 1.5 million Bitcoins. This accounts for almost 7% of the current total supply of Bitcoin in circulation. Conversely, successful Bitcoin Exchange Traded Funds (ETFs) have acquired over 5% of the entire supply, demonstrating robust institutional interest. Even with its volatile nature, major entities such as BlackRock and Metaplanet have been steadily buying Bitcoins during recent weeks.
In addition to Bitcoin, other cryptocurrencies such as Ethereum, Binance Coin (BNB), Solana, and Dogecoin are exhibiting a recovery trend. Notably, the price of Ethereum has jumped by 1.65%, while BNB, Solana, and Dogecoin have each experienced a 3% increase.
As the worldwide money supply (M2) continues to grow, financial experts predict that Bitcoin will mirror this trend and reach at least $90,000 by year’s end. Unfortunately, October has been a sluggish month for Bitcoin investors, with few indications of an ‘Uptober’ price surge in the immediate future.
China to Revive Economic Growth by Increasing Debt
Today, China disclosed plans to significantly boost its government borrowing, which will involve providing financial aid to individuals with lower incomes and propping up the real estate sector.
Instead, China’s Finance Minister Liu He did not disclose the specific amount of fiscal stimulus but hinted at implementing additional “counter-cyclical actions” this year. Liu also suggested that there is still a considerable capacity for China to issue debt. Previous reports indicated that China was considering another $283 billion economic stimulus package.
After a September gathering of China’s highest political body, the Politburo, global financial markets have shown increased interest in China’s fiscal stimulus plans, reflecting mounting worries about the nation’s economic difficulties.
Chinese shares reached their highest point in two years, leaping approximately 25% just after a significant meeting. Yet, this upward trend proved temporary because concerns within the market reemerged when the government failed to provide concrete details about their planned expenditures.
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2024-10-12 13:04