According to CoinDesk: Bitcoin's recent rally has been dampened by a lack of new stimulus measures from China, with Beijing’s latest announcements falling short of market expectations. As a result, BTC dropped by 1.5%, following a surge in the past few weeks that had been partly driven by hopes of long-term Chinese stimulus. Crypto traders are now shifting their focus to an upcoming Federal Reserve meeting for potential market direction.
The market was further disappointed when the National Development and Reform Commission (NDRC), in a Tuesday briefing, provided no specific details on new measures to stimulate China's economy. This underwhelmed investors who had anticipated stronger post-holiday market support. Consequently, the Shanghai Composite jumped by 4% at the open but closed the day lower, while the Hang Seng Index fell nearly 7%, reversing previous gains.
Bitcoin briefly touched $62,000 during late U.S. trading hours on Monday, recovering slightly to $62,700 in early Asian hours, erasing most of the gains from the past week. Major tokens, including Solana (SOL), Ether (ETH), XRP, and BNB, fell by as much as 4%, and the CoinDesk 20 Index (CD20), which tracks large-cap tokens, lost 2.18%.
The lack of urgency and substantial stimulus from China comes amid concerns about conflicts in the Middle East, which also weighed on market sentiment. As a result, many investors opted to take profits after the recent rally.
As China's NDRC Chairman Zheng Shanjie described the country's economy as “stable” with fundamentals unchanged, crypto traders are now turning their attention to the Federal Reserve's FOMC minutes and key economic figures from August, which are expected later this week and may provide further clues on BTC's next move.
