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Bitcoin’s price surged to a two-week high following China’s announcement of unclear fiscal stimulus measures. The uncertainty surrounding the scale of China’s economic efforts has sparked speculation that investors may shift their capital from Chinese equities to cryptocurrencies, such as Bitcoin.
Adding to the bullish sentiment, rising odds for a pro-crypto U.S. presidential candidate and a delay in Mt. Gox repayments have further strengthened the cryptocurrency market.
Markets, the market’s positive reaction to China’s stimulus suggests that investors are seeking alternative assets like Bitcoin as a hedge against potential risks in the Chinese equity market. The lack of clarity in China’s economic policy has likely prompted capital rotation into cryptocurrencies.
Meanwhile, the U.S. presidential race has also played a role in Bitcoin’s price surge. Prediction markets have recently favored Republican candidate Donald Trump, who is known for his pro-crypto stance. This has increased the likelihood of a pro-crypto administration in the United States.
Furthermore, the postponement of Mt. Gox’s creditor repayment deadline has alleviated concerns about a potential oversupply of Bitcoin from creditors selling their returned assets. Benjamin Celermajer, co-chief investment officer at Magnet Capital, noted that the delay in repayments will likely amplify the market’s positive response to favorable news, such as the improved polling for Trump.
