Crypto Market Surges as China Stimulates Economy with Debt Ceiling Hike
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.
Shiba Inu SHIB Posts Losses Despite Seeing 144% Surge in Bullish Metric
Shiba Inu (SHIB), the second-largest meme coin by market capitalization, has seen a significant spike in one of its major metrics. This follows after data from Shibariumscan revealed that the layer-2 network saw an unprecedented increase in the number of its active accounts within 24 hours. According to the data, the number of active accounts surged from 1,290 to 3,839 between April 27th and 28th. Although that represents an over 144% increase, the implication reaches even further. It presents a bullish outlook for Shiba Inu, which has largely depended on the layer-2 network for all the success it has recorded since launching last year. Interestingly, Shibarium also recorded another bullish trend. The network saw a similar spike in the number of new transactions. Between April 27th and 28th, new transactions on Shibarium also surged from 4,997 to 12,191. That is a 143% surge indicating yet another positive sign for the meme coin. Furthermore, reports recently made the rounds that SHIB’s decentralized exchange (DEX), ShibaSwap, is expanding to Shibarium. This move is expected to expand the user bases of both ShibaSwap and Shibarium. Ultimately, this translates to more good fortunes for Shiba Inu as an increase in user base directly means more transactions and more SHIB burns. Shiba Inu SHIB’s Price Falls Meanwhile, despite the positive signs, Shiba Inu’s price continues to be a cause for concern for token holders. The memecoin has been seeing massive drops in its value in what is a direct contrast to what the metrics paint. However, it might be safe to say that Bitcoin’s price action is responsible for the significant price decline. Market intelligence platform IntoTheBlock shows SHIB’s price at a 0.82% correlation with that of Bitcoin. This strong correlation simply means that SHIB’s price is mirroring Bitcoin’s, which has also recorded massive price falls lately. Furthermore, Shiba Inu’s price decline also reflects the drop in large transactions. Data from IntoTheBlock confirms that Shiba Inu’s large transactions have also seen a 4.60% drop. However, even that may be linked to Shiba Inu whales holding off on their investment in the meme coin.As of publication, SHIB was seen trading at 0.00002185, down 8.87% in the last 24 hours, per CoinMarketCap data.
