According to ChainCatcher, China's stock market has rebounded recently driven by government stimulus policies, but this rise may be sucking funds from the crypto market, affecting the rise of cryptocurrencies such as Bitcoin. Since September 24, the Shanghai Composite Index has risen by more than 20%, hitting a new high since May 2023. However, the price of Bitcoin is still hovering around $64,000 after China's stimulus policy, and has maintained a six-month consolidation period of $50,000 to $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 fundamental economic problems and may not bring long-term stock market gains. TS Lombard pointed out in an October 2 report that unless some fundamental problems are solved, such as repairing the balance sheets of banks, 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.