Bitcoin Hits 7-Day High of $64.3k as China Rolls Out New Economic Stimulus Measures

After declining slightly to below $60,000 earlier last week, Bitcoin has had a strong comeback. This upward movement came despite increased market volatility and concerns over rising US consumer price index (CPI) data, initially dragging Bitcoin prices down.

Bitcoin price rose on Monday, reaching $64,300, following China's announcement of new economic stimulus measures over the weekend.

The cryptocurrency had declined to below $60,000 earlier last week, but it recovered quickly amid concerns over rising US consumer price index (CPI) data. However, long-term investors, known as Bitcoin whales, used these market declines as an opportunity to buy 1.5 million Bitcoins since March. This accumulation, roughly 7% of all the Bitcoins in circulation, helped in the recovery of BTC’s price.

Moreover, institutional interest in Bitcoin has not waned either, with Bitcoin ETFs recently hitting 5% of the total supply of Bitcoin. This also helped increase the market's confidence as big firms like BlackRock and Metaplanet came in to support the institution.

This is not the first time that China's economic decisions have impacted the price of Bitcoin. In late September, BTC hit $65,000 after China pumped $113 billion into the economy and relaxed several banking measures, including reducing reserve ratios.

This rally in Bitcoin also led to gains across the other cryptocurrencies in the market on Monday. The prices of prominent digital currencies like Ethereum (ETH), Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) also saw significant increases.

The collective rally indicates increased adoption of cryptos as a product of macroeconomic changes. While October has been relatively calm for Bitcoin and other cryptocurrencies, experts still have high expectations for further growth.

Analysts have been discussing when the much-awaited ‘Uptober’ will come into play, with October being good to Bitcoin investors nine out of the last eleven years.

“The tides are shifting,” Bitcoiner Kyle Chassé stated in a post on X, indicating that the price of Bitcoin could be set to rise in the near future.

Chassé expressed confidence in the market, stating, “The next big rally isn't just a possibility — it's a reality waiting to unfold.”

China to Increase Government Debt Issuance to Boost Economy

The recent happenings in the market can be attributed to China's decision to increase its government debt issuance. In a press conference, China's finance minister, Lan Fo'an, confirmed that the government will continue to use what it calls “counter-cyclical measures” to support the economy.

However, he didn’t provide clear figures, which raised questions among investors regarding the amount and the nature of the proposed stimulus. While Lan focused on the working on local government debt, helping low-income families, and stimulating the property market, the lack of specific figures raises questions about the success of the future policies.

These measures are viewed as a response to the economic slowdown identified at the September Politburo meeting in China.

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