The bitcoin price has surged higher through 2024, rising on the back of a BlackRock-led Wall Street crypto "revolution," and a Federal Reserve dovish pivot that's created a "nightmare" scenario.
Now, as the Fed and the ECB are accused of quietly declaring war on bitcoin, a leak has revealed China could be about to drop a $1.4 trillion bombshell to kick start its stalled economy—with analysts predicting it could send the bitcoin price sharply higher.
China could approve 10 trillion yuan ($1.4 trillion) in extra debt to revive its economy, with the package increased if former U.S. president Donald Trump wins next month's U.S. presidential election, it was reported by Reuters, citing anonymous sources.
The huge, fresh measures, following a tsunami of stimulus earlier this month, could reportedly be given the green light by China's Standing Committee of the National People's Congress (NPC) during a meeting held between November 4 and November 8.
Ahead of the leak, bitcoin and crypto market watchers predicted the bitcoin price could be boosted if China opts for further monetary stimulus measures.
If Beijing announces more aggressive fiscal measures, particularly with regard to infrastructure and liquidity support, we could see renewed upside pressure on bitcoin, as it benefits from increased risk appetite," Nikolay Karpenko, director at institutional crypto liquidity provider B2C2, told DL News.
"I still think more fiscal stimulus is coming, this year and in coming years," Mohit Kumar, chief financial economist for Europe at Jefferies, told Reuters earlier this month following China's first round of stimulus measures.
Arthur Hayes, a cofounder of bitcoin and crypto derivatives pioneer BitMex who went on to set up the Maelstrom investment fund, has predicted a China "bazooka" combined with the Fed easing will create a "glorious" bitcoin and crypto bull market going into 2025.
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