Bitcoin Bounces 7% Above $63K as Crypto Traders Eye China Stimulus Statement

Cryptocurrencies
sharply
rebounded
on
Friday
from
the
previous
day’s
lows
with
bitcoin

(BTC)
retaking
$63,000
as
investors
quickly
shrugged
off
worries
over
slightly
hotter
inflation
readings,
turning
their
attention
to
a
fiscal
policy
update
from
China
on
Saturday.

Bitcoin,
the
leading
crypto
asset
by
market
capitalization,
shot
up
7%
from
Thursday’s
trough
below
$59,000
after
the
hotter
U.S.
CPI
inflation
report,
bucking
this
week’s
trend
of
giving
up
gains
during
the
U.S.
trading
hours.
Recently,
BTC
was
up
5.5%
over
the
past
24
hours,
outperforming
the
broad-market

CoinDesk
20
Index’s
(CD20)
4.7%
advance.

Tokens
from
Solana

(SOL),
Avalanche

(AVAX)
and
Render

(RNDR)
were
the
leaders
among
altcoin
majors
with
6%-8%
gains.
The
only
token
of
the
CD20
index
with
a
negative
daily
return
was
Uniswap

(UNI),
which
slightly
shed
some
of
its
Thursday
gains
that
were
spurred
by
the
decentralized
exchange’s
plan
to
launch
its
own
layer-2
network.

The
crypto
rally
happened
as
equities
also
gained,
with
the
Dow
Jones
Industrial
Average
and
S&P
500
closing
the
week
at
record
highs.
The
U.S.
dollar
index
paused
below
103
after
steeply
strengthening
over
the
past
week
as
traders
repriced
expectations
of
further
Federal
Reserve
interest
rate
cuts
following
solid
U.S.
jobs
reports
and
hotter
inflation
readings.

Crypto-related
stocks
also
reflected
the
positive
sentiment.
Bitcoin
miners
including
MARA
Holdings
(MARA),
Riot
Platforms
(RIOT)
and
Bitdeer
(BTDR)
soared
5%-10%,
while
U.S.
crypto
exchange
giant
Coinbase
(COIN)
ended
the
day
up
7%.

MicroStrategy
(MSTR),
the
largest
corporate
holder
of
BTC
with
nearly
$16
billion
of
the
asset,
surged
16%
to
its
highest
price
since
March
2000.
The
company’s
share
price
premium
versus
its
bitcoin
holdings
also

broadened
to
the
widest
since
2021.

Macroeconomic
factors
influencing
crypto
prices
have
shifted
away
from
monetary
policy
to
the
U.S.
election
outcome,
Coinbase
analysts
David
Duong
and
David
Han
said
in
a

Friday
report.

The
key
catalyst
for
crypto
volatility
might
be
the
upcoming
China
fiscal
policy
update
by
the
finance
minister
slated
for
early
Saturday
UTC.
Investors
anticipate
more
financial
stimulus
for
the
ailing
Chinese
economy
and
financial
markets,
which
could
reverberate
in
the
digital
asset
market,
the
Coinbase
report
noted.

“As
most
markets
will
be
closed
during
this
next
briefing,
we
expect
traders
could
turn
to
crypto
markets
as
a
way
to
express
their
(proxy)
views
on
the
size
and
strength
of
China’s
fiscal
announcements,”
the
authors
said.

Markus
Thielen,
founder
of
10x
Research,
noted
that
recent
U.S.
economic
data
shows
a
resilient
economy
and
jobs
market,
allaying
past
concerns
over
an
imminent
recession.

“This
sets
the
stage
for
risk
assets
to
perform
well
into
year-end,
and
it
may
take
little
to
drive
crypto
prices
higher,”
Thielen
said.
“A
significant
move
is
likely
on
the
horizon,
and
diligent
traders
will
be
well-positioned
to
capture
it.”