(Bloomberg) — Bitcoin climbed to a two-week high as a mixed reaction to China’s latest stimulus efforts fueled bets that speculators will chase cryptocurrencies instead of the country’s stocks.
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The biggest digital asset rose as much as 2.8% on Monday before paring off some of the gain and changing hands to $63,890 as of 6:55 a.m. in London. Smaller tokens, including second-place Ether and top-10 coin Solana, also advanced.
China is aiming to revive its economy, but a much-anticipated policy briefing last weekend failed to specify exactly how much fiscal stimulus the government plans to inject. Economists are not convinced officials are doing enough to combat deflation, and a global rally in Chinese stocks is starting to falter.
“Markets are likely to take a disappointing Chinese stimulus as positive news for Bitcoin, as capital rotation from Bitcoin into Chinese stocks was previously thought to depress crypto prices,” said Caroline Mauron, co-founder of Orbit Markets, a liquidity provider. for digital asset derivatives trading.
The US presidential race could be a new mainstay for digital assets. The prediction markets have reversed in recent days, giving pro-crypto Republican candidate Donald Trump a better chance of victory than Democratic rival Vice President Kamala Harris.
Meanwhile, bankrupt Mt. Gox crypto exchange last week postponed the deadline for the repayment of creditors’ remaining assets by a year to October 31, 2025, which Arkham Intelligence estimates at around $2.9 billion. The delay eases concerns about a supply glut from creditors looking to sell the returned Bitcoin.
“The recent improvement in Trump’s poll numbers will reinforce market receptiveness and the positive price impact of good news,” said Benjamin Celermajer, co-chief investment officer at Magnet Capital. “Good news, such as Mount Gox’s deferred repayment plan, will be received more positively.”
Bitcoin is now little changed for October, after a weak start to a month that saw an average gain of 20% over the past decade, according to data compiled by Bloomberg.
“Historical data suggests that October seasonal strength in crypto markets is generally weighted toward the second half of the month,” Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, wrote in a note.
–With help from Sunil Jagtiani.
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