Bitcoin has surpassed $64,000, boosted by positive market sentiment stemming from China’s economic stimulus efforts. The cryptocurrency is trading at $64,100 as of 2 p.m. ET, up 2% over the past 24 hours.

Bitcoin nears $64,000 as Chinese stocks rebound on stimulus optimism

"The main driver of this growth momentum seems to be the new economic stimulus package announced by China, which has supported market sentiment," said Min Jung, an analyst at Presto Research.

China's Finance Minister Lan Fo'an announced plans to roll out a fiscal stimulus package to revive the country's economy, but the exact amount was not disclosed. The Shanghai Composite Index responded positively, rising 2.12% on the day.

“Bitcoin price surged above $64,000 as Chinese stocks recovered from a weekend disappointment, fueling a ‘buy everything’ sentiment in the market,” said Augustine Fan, Chief Analyst at SOFA.org.

Markets rebound on US inflation concerns

Bitcoin’s rally comes after a brief dip last Thursday, when prices fell to $60,500 due to higher-than-expected U.S. consumer price index and producer price data.

However, the market appeared to have calmed down after its initial reaction to the inflation news.

“The market was initially a bit confused by the impact of the data but eventually came to the conclusion that the underlying inflation trend remains intact and the steepening curve movement continues,” Fan added.

The overall cryptocurrency market also recorded gains, with Ethereum up 3.24% to $2,539, while Solana gained 4.67% to trade above $152.

Although October is typically a bullish month for Bitcoin, analysts still advise caution due to the volatility.