Advertise
Vignesh S G
Vignesh S G
Author
- Oct 14, 2024 10:20 UTC
-
Chinese Stimulus Package Fuels Crypto Market Boom, Bitcoin Price Surges
The recent Chinese economic stimulus package has positively impacted global markets, including the cryptocurrency market.
Asian stock markets, such as Hong Kong, South Korea, and Japan, have experienced notable increases.
The positive momentum from the Chinese stimulus has also extended to the US market, with the SPX index showing growth.
In the last seven days, the Bitcoin market has seen a rise of 1.5%. Earlier this month, the market began with a fall; it saw the price fall to a low of $60,826 from $63,335 in a single day. Since that day, the market has been struggling to break above the opening price of October 1. Today, it finally broke through this tough level. What caused this sudden shift?
An analysis will lead most of us to the recent economic stimulus China announced. Let’s dive in to get a clear glimpse of the major macroeconomic elements that have supported the cryptocurrency market.
China’s New Economic Stimulus Package
Yesterday, the Chinese government announced a new economic stimulus package that includes plans to increase its debt. While specific details of the plan are still pending, its short-term effects are already visible. The Shanghai Stock Exchange (SSE) Composite Index has reacted positively to the announcement.
At the start of the day, the SSE index was at 3,241.31 CNY, and it has since climbed to 3,284.32 CNY, showing a minimum increase of 1.32%. This bullish momentum could signal a positive outlook for the broader cryptocurrency market and affect Bitcoin price prediction models.
Meanwhile, the Hong Kong market, though looking somewhat sluggish, showed bullish momentum yesterday, rising from 21,051.14 HKD to 21,663.35 HKD. As of now, the Hang Seng Index stands at 21,092.88 HKD.
Asian Markets on the Rise
Other Asian markets, such as South Korea, have also seen gains. The KOSPI index opened at 2,602.13 KRW, slightly lower than the previous day’s closing price of 2,611.84 KRW. Currently, it sits at 2,623.30 KRW, which is at least 0.80% higher than today’s opening price and about 0.46% above yesterday’s close.
The Japanese stock index, NI225, presents a similar picture, indicating that nearly all major Asian economies are benefiting from China’s stimulus. At yesterday’s market close, the NI225 index was at 39,385.71 JPY. Today, it has risen to 39,605.73 JPY, reflecting a 0.56% increase.
In this globalized world, no trend can stay local. In the US, the SPX index has recorded a surge of 0.70% today, indicating that the US market has also absorbed the positive momentum created in the global economy by the Chinese stimulus package.
This is not the first time China has introduced a stimulus package. Last month, the world’s second-largest economy rolled out a stimulus package worth $113 billion, which similarly influenced global economic trends.
Will China’s Stimulus Help or Hurt Bitcoin?
Most experts predict that the crypto market will also benefit from the Chinese economic stimulus. In recent history, the crypto industry has rarely faced a more favorable macroeconomic environment, considering that the Chinese stimulus has arrived at the same time as the US interest rate cuts, which have been positively impacting the market.
However, immediate threats remain. The U.S. Core Inflation Rate rose slightly from 3.2% in August to 3.3% in September, contrary to expectations that it would remain stable. Many experts fear that this could lead the Federal Reserve to delay future rate cuts in light of the new economic data.
Additionally, concerns linger about the long-term effects of China’s economic stimulus. If this stimulus disrupts the global market in the long run, the cryptocurrency market would likely feel the impact as well.
Stay tuned to Coinpedia for more economic data-driven crypto news stories.
Yes 
No 
