Bitcoin closed at a seven-day high late Sunday night as Asian stocks posted mixed results following China's economic stimulus measures announced over the weekend.
The cryptocurrency is trading 2.5% higher on the day to $64,300—its highest point since Oct. 7. It follows encouraging promises from the world's second-largest economy on Saturday.
China has pledged to “significantly increase” its debt to support its faltering economy, but has given no details on the size of the stimulus package, leaving investors in the dark about its potential impact on the sustainability of its recent stock market rally.
Asian stocks were mixed on Sunday, with Chinese stocks showing some gains while other regional markets faced headwinds. The Shanghai Composite rose 1.6%, fueled by optimism following the announcement.
In Hong Kong, the Hang Seng index fell 0.4%, while Japan's Nikkei 225 rose 0.57%, led by gains in tech stocks. Markets in South Korea and Australia saw modest volatility.
At the end of last month, Bitcoin rose above this. 65,000 dollars After China announced it would inject $113 billion in liquidity to support ailing stocks. He also announced that he would ease rules for buying second homes and reduce reserve requirements for banks.
The Shanghai Composite is up more than 20% from last month. Chinese stocks have started to catch up to their US counterparts over the past 12 months, rising just 6.7% compared to the S&P 500's 34.3%, data show.
Experts believe that China's stimulus measures from the country's central bank will provide a Advancing to crypto Between US interest rates and cuts abroad for the rest of the year.
Several tailwinds Including China's stimulus, changing US macroeconomic data, the upcoming presidential election, and increased payouts from FTX, the world's largest crypto rally began.
The latest U.S. payrolls figures for September also beat expectations earlier in the month, with non-farm payrolls rising by 254,000, beating forecasts of around 170,000.
The strength of the labor market has raised concerns that the Federal Reserve may delay or reduce the rate of planned rate cuts.
Last week, the consumer price index rose 2.4% year-on-year, slightly above forecasts, while the core CPI – excluding food and energy – rose 3.3%.
Inflation appears to be slowing despite a modest increase. Although the higher-than-expected CPI led some analysts to suggest the Fed may take a more cautious stance on further easing.
“We expected the market to pull back in early October due to investors rebalancing portfolios at the beginning of the quarter,” Pav Hundal, lead market analyst at crypto exchange Swyftx, told Decrypt. The macro environment looks great.”
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