PANews News on October 7, according to Coindesk, China’s stock market has rebounded recently, driven by government stimulus policies, but this rise may suck funds from the crypto market, affecting the rise of Bitcoin and other Asian markets. Since September 24, the Shanghai Composite Index has risen more than 20%, hitting a new high since May 2023. However, Bitcoin prices are still hovering around $64,000 after China’s stimulus policies, having maintained a six-month consolidation period between $50,000 and $70,000. Although the Chinese government has launched an economic stimulus plan of more than 7.5 trillion yuan, which is widely regarded as super good news for Bitcoin and other risk assets, the price of Bitcoin has not risen significantly. Danny Chong, co-founder of the Digital Asset Association of Singapore, 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 fundamental economic problems and may not bring about a long-term rise in the stock market. TS Lombard pointed out in an October 2 report that unless some fundamental problems are solved, such as repairing the bank's balance sheet, any attempt to increase lending and leverage risk-taking may fail. BCA Research also said that the rise in China's stock market may not last.