China’s unclear fiscal stimulus measures have fueled a surge in bitcoin, pushing the cryptocurrency to a two-week high and fueling speculation that investors may be turning to crypto instead of Chinese stocks. Uncertainty around the scale of China’s economic efforts has fueled capital flows into alternative assets like BTC. Adding to the momentum, rising odds of a pro-crypto U.S. presidential candidate and delays in the Mt. Gox restitution have bolstered market sentiment.

Bitcoin Soars Amid China Stimulus and US President’s Speculation

Bitcoin surged to a two-week high following mixed reactions to China’s latest economic stimulus effort, fueling speculation that investors will turn to cryptocurrencies instead of Chinese stocks, Bloomberg reported on Monday.

China’s efforts to revive its slowing economy through fiscal stimulus have left many investors uncertain, as the weekend policy update did not specify how much stimulus would be injected into the market. Caroline Mauron, co-founder of Orbit Markets, a digital asset liquidity provider, explained the market dynamics, stating:

The market may view China’s disappointing stimulus package as positive news for bitcoin, as capital flight from bitcoin to Chinese stocks has previously been said to have put pressure on the cryptocurrency’s price.

This suggests that the lack of clarity on China’s economic measures could prompt investors to shift capital into alternative assets like cryptocurrencies rather than risking their exposure to Chinese stocks, which have seen the world’s strongest bull run begin to falter.

In addition to China’s stimulus efforts, the U.S. presidential race has also contributed to the cryptocurrency rally. Prediction markets have recently shifted in favor of Republican candidate Donald Trump, who is seen as pro-crypto, increasing his chances of winning against Democratic candidate Vice President Kamala Harris.

Furthermore, last week, bankrupt cryptocurrency exchange Mt. Gox postponed its debt repayment deadline to creditors by another year, moving it to October 31, 2025. The exchange is expected to return about $2.9 billion in bitcoin. The delay has eased concerns about a potential oversupply of bitcoin from creditors selling their returned assets. Benjamin Celermajer, co-chief investment officer at Magnet Capital, commented:

Trump’s recent improvement in polls will amplify the market’s receptiveness and positive impact on prices of good news. Good news like Mt. Gox’s delayed repayment plan will be more positively received.

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