Bitcoin Rises Despite Unclear Economic Stimuli from China

The mixed reaction to China's recent stimulus measures has fueled a shift toward cryptocurrencies, becoming a questionable advantage for speculative investors. Bitcoin, the largest digital asset, reached its highest level in two weeks last Monday, trading at $63,890. Smaller tokens like Ether and Solana also recorded gains. China's attempts to drive economic recovery have been closely watched by the public. However, a political briefing expected over the weekend did not provide specific details on the fiscal stimulus's magnitude, raising doubts among economists about whether enough is being done to counteract deflation. The previously impressive boom in Chinese stock markets is beginning to show signs of fatigue. According to Caroline Mauron, co-founder of Orbit Markets, market movements suggest that capital rotations from Bitcoin to Chinese stocks have recently weighed on crypto prices. Current conditions, however, could now be interpreted as positive for Bitcoin. Additionally, the U.S. presidential campaign has provided a tailwind, as market forecasts give the pro-crypto-oriented candidate Donald Trump better chances to surpass the Democratic challenger Kamala Harris. Meanwhile, the bankrupt crypto exchange Mt. Gox has postponed the deadline for creditor repayment of their remaining assets to October 31, 2025. This delay alleviates concerns about an oversupply from creditors wishing to sell their returned Bitcoins, as estimated by Arkham Intelligence. Benjamin Celermajer of Magnet Capital believes that recent improvements in Trump's poll numbers could enhance market receptiveness to positive news. Such news as Mt. Gox's postponed repayment date is positively received. According to Sean Farrell of Fundstrat Global Advisors, historically, seasonality supports a recovery in the crypto market in the second half of October.