Bit, finex analysts reported that all risk assets, including the cryptocurrency market, are focused on China's statement on Saturday.
According to analysts, China’s new fiscal stimulus measures, expected to be announced on Saturday, October 12, could have positive consequences for Bitcoin and the overall cryptocurrency market.
Chinese Finance Minister Lan Fo’an will give details on how to “intensify” fiscal stimulus policies at a press conference on Saturday, according to the State Council Information Office.
Bitfinex analysts stated that China’s incentive plans have become an important focus for the cryptocurrency market. Analysts stated that expanded liquidity could have a positive impact on risky assets, and that this situation could also be reflected in crypto markets:
We expect a significant portion of the liquidity that will be injected into the market to be reflected in all risk assets, including crypto.
Analysts also noted that the scale and scope of China’s stimulus packages could surprise the market. They emphasized that measures that exceed expectations could have a greater impact on the market than anticipated.
Bit,finex analysts commented on Bitcoin's China expectations
Bitcoin market volatility may increase Bitfinex analysts suggested that the volatility in the Bitcoin market has decreased recently, but a significant macroeconomic development from China could lead to a positive reaction on the digital asset:
Even if a stimulus package is expected, a temporary increase in volatility may be seen following the announcement as investors readjust their positions based on the details of the package.
Alex Tapscott, Managing Director of Digital Asset Group, also said that China’s intervention in financial and real estate markets is aimed at supporting asset prices and stimulating the economy, which could increase buying demand in the cryptocurrency market.
“The easing of monetary and fiscal conditions is driving demand for riskier assets, and crypto markets could benefit from this,” Tapscott added.
