Bitcoin Surges 7% Above $63K as Crypto Traders Anticipate China’s Fiscal Stimulus Announcement
Cryptocurrencies experienced a notable rebound on Friday, with bitcoin reclaiming the $63,000 mark, as investors shrugged off concerns about slightly higher inflation and turned their attention to an upcoming fiscal policy update from China. Bitcoin, the largest cryptocurrency by market capitalization, surged 7% from its recent low below $59,000, defying the trend of shedding gains during U.S. trading hours this week. In the past 24 hours, BTC recorded a 5.5% increase, outperforming the broader CoinDesk 20 Index. Altcoins like Solana, Avalanche, and Render also saw gains between 6% and 8%, while Uniswap was the only token in the index to experience a slight decline. The rally in the crypto market mirrored the gains in equities, with the Dow Jones Industrial Average and S&P 500 closing the week at record highs. As a result, crypto-related stocks such as MARA Holdings, Riot Platforms, and Bitdeer also soared, while Coinbase, the leading U.S. crypto exchange, ended the day with a 7% increase. MicroStrategy, the largest corporate holder of bitcoin, experienced a notable surge of 16% to reach its highest price since March 2000. The company’s share price premium compared to its bitcoin holdings also widened to its largest level since 2021.
According to analysts at Coinbase, macroeconomic factors influencing crypto prices have shifted from monetary policy to the outcome of the U.S. election. The upcoming fiscal policy update from China’s finance minister, scheduled for early Saturday UTC, is expected to be a key catalyst for crypto market volatility. Investors are anticipating additional financial stimulus from China, which could impact the ailing Chinese economy and financial markets, and potentially reverberate in the digital asset market.
Markus Thielen, founder of 10x Research, highlighted that recent U.S. economic data suggests a resilient economy and job market, alleviating concerns of an imminent recession. Thielen believes that risk assets, including cryptocurrencies, will perform well until the end of the year and anticipates a significant move in the near future.