The crypto market is buzzing with renewed hope following China’s latest effort to introduce major economic stimulus measures. China recently announced raising its debt ceiling, and that may have jolted the global crypto market back to life. That is, after putting up what might be called a lacklustre display over the past few days.
Bitcoin (BTC) led the rally, gaining over 3% and seen trading at $62,700 with a market cap of $1.239 trillion. The gains follow a week of volatility that saw the flagship cryptocurrency dip below the $60,000 mark due to rising U.S. inflation data.
By deciding to increase its debt issuance, however, China may have just injected more liquidity into the global markets. This move appears to be driving the new optimism that is evident among investors.
For China, its decision borders on the need of the government to boost economic growth and offer support to various sectors, including low-income citizens and the struggling property market.
Bitcoin Whales and Altcoins Join the Rally
As the recent surge in Bitcoin’s price suggests, there is an ongoing accumulation from large investors, otherwise known as whales.
Since March, whales have added 1.5 million Bitcoins to their holdings, representing about 7% of the total supply.
In addition to that, institutional interest is also currently on the high side, with Bitcoin exchange-traded funds (ETFs) now controlling more than 5% of the total supply.
All these may be contributing to Bitcoin’s recent surge. However, Bitcoin is not the only beneficiary of China’s effort to boost the economy. Altcoins are also on hand and actively partaking in the market rally. Ethereum (ETH) has gained 1.65%, while Binance Coin (BNB), Solana (SOL), and Dogecoin (DOGE) have all posted gains of around 3%.
Analysts remain strong on the opinion that Bitcoin could reach $90,000 by the end of 2024. That is, considering that the global monetary supply (M2) continues to expand.
More Optimism for The Crypto Market
China’s finance minister, Lan Foan, has revealed plans for comprehensive debt issuance. However, there are no official statements as to the exact figures.Nonetheless, reports suggest that China may inject up to $283 billion into its economy.
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