Bitcoin surged over 7%, retaking the $63,000 mark as traders dismissed inflation concerns, focusing instead on an expected fiscal policy update from China. On Friday, Bitcoin's rise contrasted with previous lows below $59,000, reflecting a broader positive sentiment across the cryptocurrency market. Other major tokens like Solana and Avalanche also posted gains, signaling a potential bullish trend in digital assets.
Bitcoin surged over 7%, reclaiming the $63,000 mark, as cryptocurrency markets rebounded sharply on Friday. Investors quickly dismissed concerns over slightly higher-than-expected inflation figures, focusing instead on anticipated fiscal stimulus announcements from China scheduled for Saturday.
This rally defied the week's trend of Bitcoin losing ground during US trading hours, with a 7% jump from Thursday's low below $59,000. Bitcoin’s 24-hour gains (5.5%) outpaced the broader CoinDesk 20 Index (CD20), which saw a 4.7% increase. Altcoins Solana (SOL), Avalanche (AVAX), and Render (RNDR) led the charge, posting gains between 6% and 8%. Only Uniswap (UNI), slightly retracting Thursday's gains fueled by its layer-2 network announcement, showed a negative daily return within the CD20.
The cryptocurrency surge mirrored gains in the equities market, with the Dow Jones and S&P 500 closing at record highs. The US dollar index, after a week of significant strengthening, paused below 103 as traders reassessed expectations for further Federal Reserve interest rate cuts. Crypto-related stocks also mirrored this positive sentiment, with Bitcoin miners MARA, RIOT, and BTDR soaring 5-10%, and Coinbase (COIN) closing up 7%. MicroStrategy (MSTR), the largest corporate Bitcoin holder, saw a remarkable 16% surge, reaching its highest price since March 2000.
Coinbase analysts David Duong and David Han highlighted a shift in macroeconomic influences on crypto prices, moving from monetary policy towards the US election and, most significantly, China's upcoming fiscal policy announcement. This Saturday's statement is expected to detail further stimulus measures for China's struggling economy, potentially impacting the cryptocurrency market. Coinbase anticipates traders using crypto markets as a proxy to gauge the impact of these announcements, especially given the closure of most other markets during the announcement.
Markus Thielen of 10x Research noted the resilience of the US economy and job market, easing previous recession fears. This positive economic outlook, coupled with potential Chinese stimulus, suggests a strong year-end performance for risk assets, potentially driving further cryptocurrency price increases. He predicts significant market movement is imminent, advising prepared traders to capitalize on the opportunity.
