Bitcoin surged past the $65,000 mark in the last 24 hours thanks to stock market volatility driven by strong US labor force data and new economic stimulus reports from China.
Stock Market Volatility and China News
Global stock markets rose after China’s leadership pledged to stimulate its economy with additional fiscal measures. Positive labor market data in the US further boosted investor optimism. Jobless claims fell by 4,000 last week to 218,000, the lowest in four months, according to the US Labor Department. On the same day, China’s Politburo said it was important to 'further enhance the focus and effectiveness of policy measures' to support the economic recovery.
Implications for the Cryptocurrency Market
This combination of positive economic news helped Bitcoin’s price rise, allowing it to retest the critical $65,000 threshold. However, some experts warn that the rally may face challenges. Wintermute OTC trader Jake Ostrovskis highlighted the impact of China’s latest stimulus efforts: 'China has rolled out another major stimulus measure, with the Politburo pledging to boost fiscal spending through $284 billion in special government issuance and pledging to implement strong interest rate cuts. Improved liquidity environment is driving structural upside, and US spot Bitcoin ETFs posted inflows for the fifth day.'
Experts' Opinions
Jake Ostrovskis also added that the current accumulation of open interest could expose the market to sharp corrections: '$65,000 is very important. If Bitcoin cannot hold this level, it could put significant downward pressure on prices,' adding that the current accumulation of open interest could expose the market to sharp corrections.
In summary, Bitcoin crossed the $65,000 mark due to positive economic news from the US and China. However, experts caution that volatility may continue, and the market could face corrections.
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