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Bitcoin Stunted as China Eases Stimulus Plans: Has ‘Uptober’ Been Derailed?
Bitcoin has been stunted today as Beijing decided to hold off on new China stimulus measures aimed at supporting the economy.
Investors had widely expected China’s National Development and Reform Commission (NDRC) to outline additional stimulus measures following a Tuesday briefing after the Chinese Golden Week holiday.
Anticipation was high for a continuation of the government’s September plans, which included rate cuts and liquidity support to invigorate the slowing economy.
Instead, the briefing lacked urgency and specifics, with no new plans for further stimulus, underwhelming investors, and dented market sentiment.
According to a 10x Research report, the anticipated stimulus measures were expected to “ignite a parabolic rally in cryptocurrency prices, fueled by increasing global liquidity.”
The absence of such measures has derailed expectations of a substantial rally as Chinese markets re-opened on Tuesday, and a spill-over into crypto markets.
Consequently, the Hang Seng index posted its largest drop since 2008 and its second-largest drop since 2000 today, falling 9.41%. Meanwhile, the Bitcoin price dropped 2.86%
