Bitcoin surged to its highest level in two weeks, rising 2.8% to $64,080 as uncertainty surrounding China’s fiscal stimulus plans drove interest toward digital assets over traditional stocks. Other major cryptocurrencies, including Ether and Solana, also saw significant gains as the crypto market benefited from the shifting sentiment.
China’s economic recovery has been slow, and its much-anticipated weekend policy briefing disappointed many with its lack of clarity regarding fiscal stimulus. Economists have raised concerns that China’s proposed measures may fall short in combating deflation, creating uncertainty in Chinese equities, which had previously been rallying.
In the U.S., political developments are also impacting the crypto market. Prediction markets are now showing higher odds for pro-crypto Republican candidate Donald Trump in the 2024 presidential race, overtaking Democratic candidate Vice President Kamala Harris. This shift is viewed as a positive signal for digital assets, with potential regulatory benefits on the horizon.
Adding to the growing optimism, the Mt. Gox crypto exchange, which went bankrupt years ago, has extended its creditor repayment deadline by a full year to October 31, 2025. With around $2.9 billion worth of assets at stake, this delay has eased fears of a Bitcoin oversupply that could have resulted from creditors selling off their returned funds.
Despite a sluggish start to October, Bitcoin appears poised to follow its historical trend of stronger performance in the latter half of the month. Over the past decade, data shows that Bitcoin typically climbs an average of 20% during October, raising hopes for a continued rally.
