Bitcoin rose to a seven-day high late Sunday night as Asian stocks showed mixed results following China's economic stimulus plan announced over the weekend.
On the day, the cryptocurrency traded 2.5% higher at $64,300, its highest level since October 7. This follows recent stimulus promises announced by the world's second-largest economy on Saturday.
China has vowed to “significantly increase” its debt to support its weakening economy, but has given no details on the size of the stimulus package and has not given any details on the sustainability of the recent stock market rally. Investors are left in the dark about the potential impact on gender.
Asian stock markets were mixed on Sunday, with Chinese stocks posting modest gains while other regional markets faced headwinds. Buoyed by expectations following the announcement, the Shanghai Composite rose 1.6%.
In Hong Kong, the Hang Seng Index fell 0.4%, while Japan's Nikkei Stock Average rose 0.57%, led by gains in tech stocks. The Korean and Australian markets showed some fluctuations.
Bitcoin skyrocketed at the end of last month $65,000 After China announced it would inject $113 billion in liquidity to support struggling stocks. The government also announced that it would lower banks' reserve requirements and ease regulations on purchasing second homes.
The Shanghai Composite Stock Price has risen more than 20% in the last month. Data shows that Chinese stocks have only just begun to catch up with U.S. stocks over the past 12 months, gaining just 6.7% compared with the S&P 500's 34.3% gain.
Experts believe that China's central bank's stimulus measures will have a positive impact. Boost to cryptocurrencies Interest rate cuts in the US and abroad will continue for the rest of the year.
some tailwinds China's economic stimulus, changes in US macroeconomic data, the upcoming presidential election, FTX's withdrawal from bankruptcy payments, and more are all starting to bring people together for the world's largest cryptocurrency.
The latest September U.S. payroll numbers also exceeded expectations at the beginning of the month, with non-farm payrolls increasing by 254,000, well above expectations of about 170,000.
The strong labor market has raised concerns that the Federal Reserve could delay or scale back its planned interest rate cuts, as strong jobs data could fuel inflationary pressures. are.
Last week, the consumer price index rose 2.4% year-on-year, slightly more than expected, and core CPI, which excludes food and energy, rose 3.3%.
Despite the modest rise, inflation appears to be cooling. However, the better-than-expected CPI has led some analysts to suggest the Fed may be more cautious about further easing.
“We expected the market to pull back in early October due to investors rebalancing their portfolios at the beginning of the quarter,” said Pav Hundal, chief market analyst at crypto exchange Swyftx. decryption. “We are now past that challenge and the macro environment looks pretty good despite weak domestic demand in China.”
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