Odaily Planet Daily News China's stock market has rebounded recently, driven by government stimulus policies, but this rise may be sucking funds from the encryption market, affecting the rise of cryptocurrencies such as Bitcoin. The Shanghai Composite Index has risen more than 20% since Sept. 24, hitting its highest level since May 2023. However, Bitcoin prices are still hovering around $64,000 in the wake of Chinese stimulus, having maintained a six-month consolidation period between $50,000 and $70,000. Market observers noted that despite the Chinese government's more than 7.5 trillion yuan economic stimulus package, which is widely regarded as super positive news for Bitcoin and other risk assets, Bitcoin prices have not risen significantly. Danny Chong, co-founder of the Singapore Digital Asset Association, said that this capital transfer may be temporary and that once the upward trend in the Chinese stock market stabilizes, funds are expected to flow back into the crypto market. Traditional market analysts believe that China's latest stimulus measures do not solve the underlying economic problems and may not lead to long-term gains in the stock market. Any attempt to increase borrowing and leverage risk-taking is likely to fail unless some fundamental issues are addressed, such as repairing banks' balance sheets, TS Lombard said in an Oct. 2 note. BCA Research also said the rise in Chinese stocks may not last. (CoinDesk)