Bitcoin Surges As Traders Weigh China's Fiscal Stimulus
The combined impact of China's stimulus efforts and positive news regarding Mt. Gox has created a more optimistic outlook for Bitcoin as it continues to attract investors.
Bitcoin surged to its highest point in two weeks on Monday, with a 2.8% rise before settling at around $64,880 by early morning in London. The spike came as traders reacted to China's latest stimulus measures and speculated that underwhelming economic policies might push more investors toward cryptocurrencies rather than Chinese equities. Other major cryptocurrencies like Ether and Solana also saw gains.
China's weekend announcement of fiscal stimulus plans left many investors disappointed, as no concrete figures were provided. Economists remain skeptical that the Chinese government is doing enough to combat deflation, and the recent rally in Chinese stocks has begun to stall. Some market analysts, like Caroline Mauron of Orbit Markets, believe this uncertainty is driving capital from Chinese equities into cryptocurrencies like Bitcoin.
The delay in creditor repayments from the bankrupt Mt. Gox crypto exchange has also supported market sentiment. The repayment deadline was pushed back to October 2025, easing concerns about a sudden influx of Bitcoin hitting the market.
Despite Bitcoin's weak start in October, which is historically a strong month for crypto, analysts suggest that the latter half of the month could see further gains. Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors, noted that October typically delivers its strongest performance toward the end of the month.
