James Richardson
Bitcoin (BTC) and the broader cryptocurrency market are experiencing renewed strength, with prices rising by more than 3%, driven by China’s latest economic stimulus measures. Currently, Bitcoin is trading at $62,700, marking a 3.16% increase, while its market capitalization has reached $1.239 trillion. Earlier today, China expanded its debt ceiling to inject more liquidity into the economy, sparking optimism across global markets.
Bitcoin and Altcoins Rebound After Recent Decline
After dropping below $60,000 earlier this week amid concerns over rising U.S. inflation data, Bitcoin has made a significant recovery, approaching the $63,000 level. Despite ongoing volatility, large-scale Bitcoin investors, known as whales, have consistently used market dips to increase their holdings.
Since March, BTC whales have accumulated approximately 1.5 million BTC, which represents around 7% of the total circulating supply. Additionally, the success of Bitcoin ETFs has contributed to increased institutional demand, with these financial products holding over 5% of the total BTC supply. Major institutional players like BlackRock and Metaplanet have continued to add Bitcoin to their portfolios, even during periods of market turbulence.
Learn: How to Buy Cryptocurrency?
Meanwhile, altcoins are also benefiting from the market recovery. Ethereum (ETH) has risen by 1.65%, and other major cryptocurrencies like Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) have seen gains of 3%.
Market Outlook: Bitcoin’s Path to $90,000
With global monetary supply (M2) increasing, market analysts predict that Bitcoin could reach $90,000 by the end of the year. However, October has been relatively quiet for BTC investors, with no significant signs of the expected ‘Uptober’ rally materializing just yet.
Global M2 Money Supply + Bitcoin – Bloomberg Finance
China’s Economic Stimulus Measures Aim to Boost Growth
Earlier today, China announced plans to significantly increase government debt issuance to stimulate its economy. This includes offering subsidies for low-income households and supporting the struggling property market.
While China’s finance minister, Lan Foan, did not specify the exact size of the fiscal stimulus, he indicated that further “counter-cyclical measures” would be implemented this year. Previous reports suggest that China is considering a $283 billion economic stimulus package.
These fiscal measures have attracted considerable attention in global financial markets, especially after the September Politburo meeting of China’s Communist Party, which emphasized concerns about the country’s economic outlook.
Following the announcement, Chinese stocks surged, reaching two-year highs with a 25% increase within days of the meeting. However, the rally was short-lived, as uncertainty resurfaced due to the lack of concrete details about the government’s spending plans.
