Bitcoin rises as traders weigh China’s economic stimulus

Bitcoin (CRYPTO:BTC) surged to a seven-day high of $64,300 late Sunday, following mixed reactions in Asian stock markets after China announced plans to raise its debt to support its slowing economy.

The cryptocurrency rose by 2.5% on the day, continuing an upward trend fueled by China’s stimulus measures, although the details of the package remain undisclosed.

China’s decision to significantly increase its debt, aimed at stabilizing its economy, has left investors uncertain about its broader global impact.

In response to the news, Asian stock markets displayed varied results.

The Shanghai Composite Index gained 1.6%, while Hong Kong’s Hang Seng Index dipped by 0.4%.

Japan’s Nikkei 225 also saw a 0.57% rise, primarily driven by gains in technology stocks.

Bitcoin previously surpassed $65,000 in late September after China injected $113 billion in liquidity into its stock market.

The country’s actions included easing regulations on second-home purchases and lowering reserve requirements for banks, which contributed to financial market growth.

China’s recent stimulus moves have bolstered a positive outlook for cryptocurrencies.

Experts predict that these measures, combined with a potential reduction in U.S. interest rates and market shifts related to the upcoming U.S. presidential election, could continue to drive Bitcoin’s growth for the remainder of the year.

Despite stronger-than-expected U.S. payroll data and moderate inflationary pressures, analysts expect the Federal Reserve to adopt a cautious approach toward further interest rate cuts.

According to market analyst Pav Hundal, the global macro environment remains favorable, despite weaker domestic demand in China, creating an optimistic outlook for Bitcoin’s trajectory in the coming months.

At the time of writing, the Bitcoin price was $63,939.25.