Bitcoin Climbs as China’s Stimulus Uncertainty Sparks Crypto Interest

Bitcoin surged to its highest point in two weeks as China’s ambiguous fiscal stimulus plans sparked interest in digital assets over traditional stocks. The leading cryptocurrency jumped 2.8% settling at $64080 at time of writing. Other cryptocurrencies, including Ether and Solana, followed suit, experiencing gains.

China’s economy has been struggling to recover, and its highly anticipated weekend policy briefing left many disappointed with the lack of clarity on the extent of the proposed fiscal stimulus. Economists expressed concerns that China’s measures may not be sufficient to combat deflation, leading to uncertainty in Chinese equities, which had previously been experiencing a strong rally.

In the United States, the political landscape is also influencing the crypto market. Recent shifts in prediction markets have shown increased odds for pro-crypto Republican candidate Donald Trump to win the 2024 presidential race, surpassing Democratic candidate Vice President Kamala Harris. This shift is seen as a potential boost for digital assets.

Adding to the bullish sentiment, the bankrupt Mt. Gox crypto exchange extended its creditor repayment deadline by one year to October 31, 2025. This delay, involving an estimated $2.9 billion in assets, has eased concerns over a potential oversupply of Bitcoin that could have occurred if creditors sold off their returned holdings.

While Bitcoin has had a slow start to October, it remains poised to follow its historical trend of stronger performance in the latter half of the month. Data from the past decade shows an average 20% climb for Bitcoin during October.