Bitcoin briefly surpassed $64,000 on Monday during Asian afternoon trading, driven by positive market sentiment from China’s economic stimulus efforts.
The cryptocurrency rose 2% in the past 24 hours, trading at $63,900 as of 2 a.m. UTC.
“A significant driver of this momentum appears to be the recently announced stimulus package from China, which has bolstered market sentiment,” said Min Jung, an analyst at Presto Research.
China’s Finance Minister, Lan Fo’an, unveiled plans to introduce a fiscal stimulus package to revive the country’s economy, though specific figures were not disclosed. The Shanghai Composite Index responded positively, rising 2.12% during the day.
“Bitcoin prices jumped above $64K as Chinese equities rebounded from weekend disappointments, fueling a ‘buy everything’ sentiment across markets,” said Augustine Fan, Head of Insights at SOFA.org.
Market Recovery After U.S. Inflation Jitters
Bitcoin’s rise follows a brief slump last Thursday, when prices dipped to $60,500 due to higher-than-expected U.S. consumer and producer price index data. However, markets appeared to regain composure after initially reacting to inflation news.
“Markets were initially confused by the data impact but ultimately concluded that the core inflation trend remained intact, keeping the curve steepening move in place,” Fan added.
The broader cryptocurrency market also posted gains. Ether rose 3.24% to $2,539, while Solana jumped 4.67%, trading above $152. The overall crypto market recorded a 2% increase.
Cautious Optimism for ‘Uptober’
While October has historically been a bullish month for Bitcoin, analysts advised caution, citing multiple uncertainties.
“China’s Q3 GDP report on Friday, along with earnings releases from major U.S. banks, will likely influence market sentiment,” Presto’s Jung said.
Geopolitical risks also remain a key concern, with escalating tensions in the Middle East potentially weighing on global risk assets.
In addition, the looming U.S. presidential election on Nov. 5 is contributing to market uncertainty. On the decentralized betting platform Polymarket, former president and crypto advocate Donald Trump leads the polls with 54%, compared to Vice President Kamala Harris’s 45.4%.
“Political uncertainty will play a critical role in market movements as the election approaches, adding to the volatility,” Jung noted.
Bitcoin’s sideways trading between $62,500 and $63,000 over the weekend suggests market participants are waiting for further developments before making significant moves.
