Bitcoin
Bitcoin
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The price of bitcoin has skyrocketed over the past two years, rising more than 200%, largely due to the BlackRock-led bitcoin revolution on Wall Street (which is suddenly heading for another earthquake).
As details of a secret meeting between Elon Musk and bitcoin-loving El Salvadoran President Nayib Bukele emerge, China has unleashed a wave of stimulus measures aimed at propping up its faltering economy, just after the U.S. Federal Reserve cut interest rates and kicked off a global round of monetary policy easing.
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Chinese President Xi Jinping has launched huge stimulus measures to combat slowing growth and … (+)
People’s Bank of China Governor Pan Gongsheng announced a series of “bold” stimulus measures, cutting bank reserves by 50 basis points and slashing mortgage rates to boost economic growth.
“I think these are pretty bold moves by the authorities,” said Kyle Rodda, senior financial markets analyst at Capital.Com. Reuters“This cannot be called a ‘big bang’ (a large-scale stimulus measure). It is mainly aimed at financial markets and supporting the banking system… Overall, for investors, this is a very optimistic measure.”
“More and bolder easing measures could also be on the cards in the coming quarters,” added Vasu Menon, managing director of investment strategy at OCBC.
The price of bitcoin and the broader cryptocurrency market have so far failed to move on the news from China, even as stocks across Asia hit their highest levels in more than two and a half years.
“Bitcoin’s lack of response to this news, juxtaposed with rising Chinese indices, underscores that its current beta appears more closely tied to Fed policy and US markets, as evidenced by the nearly two-year high correlations with US stocks, particularly after last week’s FOMC (Federal Open Market Committee) meeting,” said Rick Maeda, a Singapore-based research analyst at Presto Research. Coindesk.
Last week, the Fed’s historic 0.5% interest rate cut sent bitcoin prices soaring as traders prepared for the start of a new liquidity cycle.
Some optimistic investors say the Federal Reserve’s interest rate cuts and China’s stimulus measures are likely to trigger a surge in bitcoin’s price in the coming years.
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The price of bitcoin has been rising in recent years, fueled by the Federal Reserve and … (+)
“I still have a price target of $1 million (in bitcoin),” said Arthur Hayes, co-founder of bitcoin and cryptocurrency derivatives pioneer BitMex, who later founded the Maelstrom investment fund. Coindesk last week.
“I’m more of a 2026 or 2027 kind of guy. Next year, we’re going to see a real increase in fiscal spending, regardless of who wins the U.S. election. And if the U.S. dollar goes down a lot, China will have the opportunity to do some stimulus and keep the yuan stable. And then the other major central banks will follow the Fed. They’re looking at the Fed: They’re easing their policies so that we can ease our policies as well.”
Hayes previously said he expected a Chinese “bazooka” combined with Fed easing to create a “glorious” cryptocurrency bull market.
