China’s unclear fiscal stimulus measures have fueled a surge in bitcoin, pushing the cryptocurrency to a two-week high and sparking speculation that investors may shift to cryptocurrencies over Chinese equities. The uncertainty surrounding the scale of China’s economic efforts has prompted capital rotation into alternative assets like BTC. Adding to the momentum, rising odds for a pro-crypto U.S. presidential candidate and a delay in Mt. Gox repayments have strengthened market sentiment.
Bitcoin Surges Amid China’s Stimulus and US Presidential Speculation
Bitcoin surged to its highest level in two weeks following mixed reactions to China’s latest stimulus efforts, fueling speculation that investors would turn to cryptocurrencies instead of Chinese equities, Bloomberg reported Monday.
China’s bid to revive its slowing economy through fiscal stimulus left many investors uncertain, as the weekend policy update did not clearly define the amount of stimulus that would be injected into the market. Caroline Mauron, co-founder of Orbit Markets, a digital asset liquidity provider, explained the market dynamics, stating:
Markets are probably taking a disappointing China stimulus to be positive news for bitcoin, as capital rotation from bitcoin into Chinese equities was understood to be previously weighing on crypto prices.
This suggests that the lack of clarity in China’s economic measures may be prompting investors to move their capital into alternative assets like cryptocurrencies rather than risking Chinese stocks, which have seen a world-leading rally start to falter.
In addition to China’s stimulus efforts, the U.S. presidential race is contributing to cryptocurrency gains. Prediction markets have recently shifted in favor of Republican candidate Donald Trump, who is considered pro-crypto, raising his chances of winning over Democratic candidate Vice President Kamala Harris.
Moreover, last week, the bankrupt Mt. Gox crypto exchange postponed the deadline for repaying creditors by another year, moving it to Oct. 31, 2025. The exchange is expected to return about $2.9 billion in bitcoin. This delay has reduced fears of a potential oversupply of bitcoin from creditors selling their returned assets. Benjamin Celermajer, co-chief investment officer at Magnet Capital, remarked:
The recent improvement in Trump polling will amplify the market’s receptiveness and the positive price impact of good news. Good news such as the Mt. Gox delayed repayment plan will be received more positively.
What do you think about bitcoin’s rise amid China’s stimulus and the U.S. presidential race?
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