$BTC

Bitcoin Surpasses $65,000! US and China Economic Developments Affected the Rise

Bitcoin $65,661 gained value this week, exceeding the $65,000 threshold. The rise is driven by the rise in the stock market, positive US labor market data, and China's economic stimulus measures.

Stock Market Rally

Bitcoin's rise was primarily driven by the general rally in the stock market. Positive US labor market data supported the markets by increasing investor confidence.

China's Economic Stimulus Steps

On the other hand, China has lowered interest rates and increased bank liquidity in order to stimulate the economy. In addition, deflation is being combated by housing incentives and the establishment of a stock stability fund. “China will reduce the reserve requirement ratio by 50 basis points, providing more than 1 trillion yuan of liquidity to the market,” the People’s Bank of China said in a statement.

The Relationship Between Bitcoin and Global Liquidity

Bitcoin’s long-term correlation with global liquidity is quite strong. This correlation shows that Bitcoin tends to gain value when liquidity increases. “The data shows that Bitcoin’s correlation with liquidity is higher than gold and stocks,” said macroeconomic analyst Lyn Alden.

China’s liquidity-boosting efforts could contribute to Bitcoin’s long-term rally. However, in the short term, Bitcoin price movements are more likely to be affected by crypto-specific factors. Bitcoin’s current bullish trend presents an important opportunity for investors to observe the relationship between cryptocurrencies and economic indicators.

Market watchers predict that Bitcoin’s value could continue to rise due to the ongoing impact of economic data in China and the US.