Bitcoin (BTC) and the broader crypto market are once again surging above 3% on the back of China's strong economic stimulus. BTC price increased by 3.16% and was trading at the $62,700 level, giving it a market capitalization of $1,239 trillion. Earlier today, China raised its debt ceiling to stimulate the economy, bringing more liquidity into the market.
Bitcoin and altcoins rise with strong reversal
After falling below $60,000 earlier this week on the back of rising US CPI data, Bitcoin prices have made a strong recovery and soared to $63,000. However, despite the current volatility, Bitcoin whales continue to accumulate BTC at every opportunity.
Since March of this year, whales have accumulated a total of 1.5 million Bitcoins, representing nearly 7% of the total circulating supply. On the other hand, successful Bitcoin ETFs have accumulated more than 5% of total supply, indicating strong demand from institutional investors. Despite the volatility, major companies such as BlackRock and Metaplanet have been accumulating BTC over the past few weeks.
Similar to Bitcoin, altcoins are also showing signs of a rebound, with Ethereum (ETH) price surging 1.65%, while BNB, Solana (SOL), and Dogecoin (DOGE) are up 3% each.
As the global money supply (M2) increases, market analysts believe that Bitcoin will also follow this trajectory and reach at least $90,000 by the end of the year. So far, October has been a dull month for Bitcoin investors, with little sign of an “uptober” rally in the short term.
China aims to recover economic growth as debt increases
Earlier today, China announced that it would significantly increase government bond issuance and provide subsidies to low-income earners while supporting the real estate market.
However, Chinese Finance Minister Lang Feng did not specify the size of the fiscal stimulus, but said further “anti-cyclical measures” would be taken this year. “China still has relatively large scope for debt issuance,” Lan said. According to previous reports, China was planning another $283 billion in economic stimulus.
China's fiscal stimulus plans have attracted significant attention in global financial markets after a meeting of the Communist Party's top political bureau in September highlighted growing concerns about the country's economic challenges.
Chinese stocks rose 25% within days of the meeting, to a two-year high. However, the rally was short-lived as a lack of details about the government's proposed spending plan reignited market jitters.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance led him to focus on the emerging blockchain technology and cryptocurrency market. He is passionate about continuous learning and stays motivated by sharing the knowledge he gains. In his free time, Bhushan enjoys reading thriller fiction novels and sometimes hones his cooking skills.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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