Bitcoin (BTC) and the broader crypto market are once again showing strength gaining over 3% in the backdrop of a strong Chinese economic stimulus. The BTC price is trading up by 3.16% at $62,700 levels with a market cap of $1,239 trillion. Earlier today, China raised its debt ceiling in economy-boosting measures pushing more liquidity into the market.
Bitcoin and Altcoins Rally In Strong Reversal
Following the dip under $60,000 earlier this week amid rising US CPI data, the Bitcoin price has made a strong recovery surging all the way closer to $63,000. But despite the current volatility, Bitcoin whales have continued to accumulate BTC at every opportunity.
Since March this year, whales have accumulated a total of 1.5 million Bitcoins, which is nearly 7% of the total circulating supply. On the other hand, the successful Bitcoin ETFs have accumulated more than 5% of the total supply, which shows strong institutional demand. Despite the volatility, big players like BlackRock and Metaplanet have been accumulating BTC over the past few weeks.
Along with Bitcoin, the altcoins are showing signs of a bounce back with the Ethereum (ETH) price surging 1.65%, while while BNB, Solana (SOL), and Dogecoin (DOGE) seeing 3% gains each.
With the global monetary supply (M2) increasing, market analysts believe that Bitcoin will also follow this trajectory hitting at least $90,000 by the end of the year. So far, October has been dull for BTC investors with little signs of ‘Uptober’ rally in the near term.
China to Revive Economic Growth by Increasing Debt
Earlier today, China announced that it would increase its government debt issuance substantially thereby offering subsidies to people with low income while supporting the property market.
However, China’s finance minister Lan Foan didn’t reveal the size of the fiscal stimulus but stated that there would be more “counter-cyclical measures” this year. “There is still relatively big room for China to issue debt,” said Lan. As per the previous reports, China was planning another $283 billion economic stimulus.
Fiscal stimulus measures in China have drawn significant attention in global financial markets following a September meeting of the Communist Party’s top leadership, the Politburo, which highlighted growing concern over the country’s economic challenges.
Chinese stocks surged to two-year highs, jumping 25% within days of the meeting. However, the rally was short-lived as market anxiety resurfaced due to the lack of specifics on the government’s proposed spending plans.
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