Bitcoin (BTC-USD) reached a two-week high as market participants reacted mixedly to China’s latest stimulus measures, fueling speculation that investors may pivot toward cryptocurrencies instead of the country’s stocks. The largest digital asset saw an increase of up to 2.8% on Monday, before settling at $63,890 as of 6:55 a.m. in London. Other smaller tokens, including second-ranked Ether (ETH-USD) and the top-10 coin Solana (SOL-USD), also experienced gains.
China is actively working to rejuvenate its economy, but a highly anticipated weekend policy briefing fell short of detailing the exact amount of fiscal stimulus planned. Economists remain skeptical about the government’s efforts to combat deflation, and a previously strong rally in Chinese equities is beginning to show signs of fatigue.
“Markets are likely interpreting the lackluster China stimulus as a positive development for Bitcoin, as the capital rotation from Bitcoin to Chinese equities had previously been a drag on crypto prices,” explained Caroline Mauron, co-founder of Orbit Markets, a firm specializing in liquidity for digital asset derivatives trading.
The upcoming U.S. presidential race could also be providing support for digital assets. In recent days, prediction markets have shifted, giving pro-crypto Republican candidate Donald Trump better odds of winning than Democratic rival Vice President Kamala Harris.
Additionally, the bankrupt Mt. Gox crypto exchange announced a one-year extension to its creditor repayment deadline, pushing it back to October 31, 2025. Arkham Intelligence estimates that approximately $2.9 billion in assets remain, and this delay alleviates concerns about a potential supply glut from creditors seeking to sell returned Bitcoin.
“The recent uptick in Trump’s polling will likely enhance the market’s responsiveness to positive news,” stated Benjamin Celermajer, co-chief investment officer at Magnet Capital. “Good news, such as the Mt. Gox repayment delay, will be viewed more favorably.”
Despite the recent gains, Bitcoin’s performance for October remains relatively unchanged, following a weak start to a month that has historically seen an average increase of 20% over the past decade, according to Bloomberg data.
“Historical patterns indicate that the seasonal strength of crypto markets in October tends to be more pronounced in the latter half of the month,” noted Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, in a recent report.
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