YEREVAN (CoinChapter.com) — On Tuesday, China announced a wide-ranging stimulus plan designed to drive economic activity. The measures included a 0.5 percentage point cut to interest rates on existing mortgages and a reduction in reserve requirements for banks, enabling more lending.
These actions fueled gains in both European and U.S. stock markets. The Shanghai Composite Index surged over 4%, closing at 2,863.13 points. In Europe, the FTSE 100 climbed by 0.28%, and the STOXX Europe 600 rose 0.65%. In the U.S., the S&P 500 advanced 0.21%, with commodities also seeing an uptick. Brent crude oil jumped 1.4% to reach $74.28 per barrel.
The People’s Bank of China (PBoC), led by Governor Pan Gongsheng, aims to stimulate domestic demand through these aggressive measures. As a result, the actions increased investor confidence in sectors tied to the Chinese economy, boosting global markets.
China’s Stimulus Package: PBOC Measures. Source: Our Crypto World Bitcoin Reacts to China’s Monetary Stimulus
Although stock markets reacted strongly to China’s stimulus, cryptocurrencies such as Bitcoin have also shown significant price changes in the past 24 hours. Bitcoin, for instance, has risen 1.51% in the last day, currently trading at $64,349.99.
Bitcoin’s 24-Hour Price Surge. Source: CoinMarketCap
Analysts from QCP Capital pointed out that the combination of China’s stimulus and the U.S. Federal Reserve’s 50-basis-point rate cut could support risk assets like cryptocurrencies. However, the market has yet to respond, with the overall sentiment in digital assets staying flat.
Ether Derivatives Show Positive Momentum
While the broader cryptocurrency market remains quiet, Ether is showing some promise in the derivatives space. According to QCP Capital, there has been a shift in the Ether options market, moving from puts to calls, indicating that traders expect a potential price increase. Additionally, Ether’s implied volatility is trading 9% higher than bitcoin, reflecting a more optimistic outlook for ether in the near term.
Ether trades at $2,657.38, marking a 12.77% increase over the past week.
Ether’s Weekly Performance Surge. Source: CoinMarketCap
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