The post Crypto Market Rallies Amid China’s Economic Stimulus: Bitcoin Breaks Key Levels appeared first on Coinpedia Fintech News
In the last seven days, the Bitcoin market has seen a rise of 1.5%. Earlier this month, the market began with a fall; it saw the price fall to a low of $60,826 from $63,335 in a single day. Since that day, the market has been struggling to break above the opening price of October 1. Finally, today, it surpassed that challenging level. How all of a sudden the market has shifted in favor of the crypto industry? An analysis will lead most of us to the recent economic stimulus China announced. Let’s dive in to get a clear glimpse of the major macroeconomic elements that have supported the cryptocurrency market.
Chinese Economic Stimulus: Reactions in Asian Markets
Yesterday, the Chinese government launched a new economic stimulus package. As part of the package, the government is preparing to increase its debt. Certain key details of the plan have not yet been published. For that reason, it is difficult to assess the long-term impact of the package. But, from how the SSE Composite Index has reacted lately, it is evident that the package has created a positive short-term impact on the Chinese market.
At the start of the day, the SSE index was at $3,241.31 CNY. Now, it stands at $3,284.322. This indicates that the Chinese market has witnessed a minimum 1.32% increase. This could provide some bullish indicators for the broader crypto market and influence Bitcoin price prediction models.
Meanwhile, the Hong Kong market, though it looks dull right now, witnessed a bullish momentum yesterday, when it rose from 21,051.14 HKD to 21,663.35 HKD. Presently, the Hang Seng Index stands at 21,092.88 HKD.
Apart from China, certain Asian markets like South Korea have also witnessed a boost. At the start of the day, the KOSPI index was at 2,602.13 KRW – a bit lower than the closing price of 2,611.84 KRW recorded the previous day. Currently, it stands at 2,623.30 KRW – at least 0.8020% higher than today’s opening price and around 0.459% above the closing price of the previous day.
The Japanese stock index, NI225, also presents a similar picture, indicating that almost all the top Asian economies have benefited from the Chinese stimulus. At the time of the close of the market yesterday, the NI255 index was at 39,385.71 JPY. Currently, the index remains at 39,605.73. This points to a 0.5586% climb in the Japanese market today relative to its previous closing.
In this globalized world, no trend can stay local. In the US, the SPX index has recorded a surge of 0.70% today, indicating that the US market has also absorbed the positive momentum created in the global economy by the Chinese stimulus package.
This is not the first time that China has introduced a stimulus package. Last month, the world’s second-largest economy launched a stimulus package worth $113 billion. At that time, the global economy reacted in a similar way.
Will China’s Stimulus Help or Hurt Bitcoin?
Most experts predict that the crypto market will also benefit from the Chinese economic stimulus. In recent history, the crypto industry has rarely faced a more favorable macroeconomic environment, considering that the Chinese stimulus has arrived at the same time as the US interest rate cuts, which have been positively impacting the market.
However, this does not mean that there is no immediate threat. The September US Core Inflation Rate climbed slightly higher than August’s 3.2 to 3.3%, as against the prediction that it would remain at 3.2%. Many experts fear the possibility of the US Fed delaying the upcoming rate cuts in light of the new economic data.
Another concern for many experts is the long-term impact of the Chinese economic stimulus. If the present economic stimulus causes havoc in the global market in the long run, the crypto market would not be exempt from that.
Stay tuned to Coinpedia for more economic data-driven crypto news stories.
