By Michael Scott
Bitcoin price surged above $67,000 in a fortune change from the poor start witnessed early this month. With Bitcoin now changing hands for over $67,500, Is it the start of “Uptober”?
Bitcoin price rally on Monday fueled fresh excitement for a bullish October in a reversal of the rocky start attributed to rising Middle East tensions. Bitcoin maintained a strong jump behind the seven-day high on Sunday to touch the $66,000 price level in Monday’s trading.
Bitcoin is leading the charge to show an intriguing shift fueled by market sentiment changes following the economic stimulus measures announced by China during the weekend. The uptrend reignited the market-wide bullish sentiment, reversing the community’s shattered hopes for the bull season.
Convergence of Factors Support Bullish Sentiment
Bitcoin rallied to its seven-day high on Sunday evening, replicated on Monday and Tuesday, lifting BTC price to nearly $68,000 on Tuesday evening. The Monday jump lifted the Bitcoin price above $65,000 initially in October. At press time, CoinGecko data shows the global largest crypto asset is now changing hands at $66,980.
Bitcoin is revisiting price levels that were last witnessed on September 27, even when its market value got off to a slow start of the much-anticipated bull season. The bull season, dubbed “Uptober,” is a reference traders accord in October for the historically huge gains in the month, with BTC now up 14.8% per CoinGecko data.
The rise in Bitcoin price is a timely change of fortune since plunging earlier this month to trade at $59,000. Its rise coincides with the money flowing to the risk-on assets, notably the Bitcoin exchange-traded funds (ETFs).
The inflow arises from the Federal Reserve’s move to cut the interest rates. Nonetheless, tensions attributed to the Middle East instability and uncertainty over subsequent Fed moves scared the traders, leaving Bitcoin with a huge drift away from revisiting the March peak levels, which were just shy of $74,000.
Is China’s Economic Stimulus Easing Struggles Crypto and Asian Stocks Confront?
The crypto market rides on modest gains as China assured a significant increase in the country’s debt levels to support the economy. While the Saturday vow offers no certainty on the stimulus size, digital assets, and Asian stocks have responded to the news.
The global crypto market value maintains the uptrend momentum with a 0.3% gain in the past 24 hours to $2.42 trillion. The total crypto trading volume hit $135 billion, with Bitcoin dominance at 54.9% and Ethereum at 13%, respectively.
Bitcoin is trading 7.5% higher on the week to ride on the stimulus promises conveyed by the global second-largest economy on Saturday. The significant scaling of debt will support China’s weakening economy, though investors are uncertain about the sustainability of the recent market rally.
The stimulus news saw Asian equities portray a mixed outcome, with the Chinese stocks led by Shanghai Composite gaining. Japan’s Nikkei 225 gained 0.57%, fueled by the tech stocks. Meanwhile, Hong Kong is among the regional markets that encountered headwinds, with the Hang Seng Index slumping by 0.4%. Similarly, markets in South Korea and Australia suffered minor fluctuations.
Bitcoin rallied above $65,000 last month following China’s plans of a $113B liquidity injection to prop the ailing stocks. Additionally, China offers to slash reserve requirements, in addition to easing requirements for second-home acquisitions.
Recent media reports state China could raise an additional $850B by issuing ultra-long special government bonds to bolster the sagging economy. As such, the Shanghai Composite has grown 20% over the past month.
The Chinese stocks are at the onset of ascendency as they aim to catch up with their US counterparts. Nonetheless, they are only 6.7% up relative to the S&P 500’s 34.3%. The stimulus measures by China will offer the needed boost to crypto assets throughout Q4.
Beyond the stocks, Bitcoin upside momentum is imminent as the convergence of factors sets the stage for a BTC price uptick. The crypto space will leverage several tailwinds, including the US presidential election, shifting macroeconomic data, and FTX bankruptcy payouts besides China’s stimulus.