Bitcoin surged to a two-week high on mixed reactions to China’s latest stimulus efforts, fueling speculation that speculators will turn to cryptocurrencies instead of Chinese stocks.
The largest cryptocurrency rose as much as 2.8% in the last 24 hours on Monday before pulling back slightly, reaching $63,890. Smaller tokens, including second-ranked Ether and top-10 Solana, also saw gains.
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Cryptocurrency Moves Amid Disappointment Over China Stimulus
China is scrambling to revive its economy, but a much-anticipated weekend briefing didn’t spell out exactly how much fiscal stimulus the government plans to inject. Economists remain unconvinced that officials are doing enough to combat the downturn, and a massive rally in Chinese stocks has begun to ease.
“Markets may see China’s disappointing stimulus as positive news for Bitcoin, as the capital shift from Bitcoin to Chinese equities is understood to have been negative for crypto prices in the past,” said Caroline Moron, co-founder of Orbit Markets, which provides liquidity for trading digital asset derivatives.
US Presidential Election and Its Impact on Digital Assets
The US presidential election could be another factor supporting cryptocurrencies. Predictions in prediction markets have shifted over the past few days, giving crypto-friendly Republican candidate Donald Trump a better chance of winning than his Democratic rival, Vice President Kamala Harris.
Meanwhile, bankrupt cryptocurrency exchange Mt. Gox announced last week that it was delaying its creditor repayments by a year to October 31, 2025. Arkham Intelligence estimates that the remaining assets are worth around $2.9 billion. The delay eases concerns about the supply of bitcoin increasing as creditors begin selling off the recovered assets.
“The recent improvement in Trump’s poll numbers will increase the market’s acceptance of good news and its positive impact on prices,” said Benjamin Seilermajer, co-head of investments at Magnet Capital. “The good news is the Mt. Gox deferral plan.”
Bitcoin Performance in October
Bitcoin has seen little change in October so far after a weak start, although the month has seen an average gain of 20% over the past decade.
“Historical data suggests that seasonal strength in crypto markets during October typically centers in the second half of the month,” Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, wrote in a note.
