On Monday, Bitcoin surged by more than 5%, crossing the $65,000 threshold for the first time since September 29. As of 1:42 PM ET, Bitcoin was trading at $65,790, marking a 5.24% increase from the previous day, with prices briefly hitting around $66,200 during the day. Other major cryptocurrencies also saw gains, with Ethereum rising 7.48% and Solana climbing 7.05%.
Analysts have attributed Bitcoin’s strong rally to market disappointment over China’s recently announced economic stimulus measures, which fell short of expectations. On Saturday, China introduced a stimulus plan that included an expansion of government bond issuance, but the lack of specific details led to widespread disappointment. This, coupled with a weekend briefing that did not address the urgent need for more substantial fiscal stimulus, has shaken confidence in the Chinese economy.
As a result, some analysts believe that funds exiting the stock market, mainly those previously invested in Chinese assets, may be flowing into the cryptocurrency market. Caroline Mauron, co-founder of Orbit Markets, noted that disappointment over China’s stimulus plan is likely driving funds back into cryptocurrencies like Bitcoin.
Along with the economic factors, political developments in the U.S. appear to be influencing the cryptocurrency market. The rising likelihood of former President Donald Trump winning the upcoming U.S. election is seen as a bullish factor for Bitcoin. According to CoinDesk, recent shifts in prediction markets have increased Trump’s chances of victory, further boosting cryptocurrency prices. Betting site Polymarket currently places Trump’s election probability at 54.8%, compared to Vice President Kamala Harris’s 44.8%, contributing to heightened volatility in the crypto market amid political uncertainty.
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