Bitcoin surged to a two-week high as a mixed reaction to China’s latest stimulus efforts boosted speculation that investors would prefer cryptocurrencies over Chinese stocks.
The largest digital asset rose by as much as 2.8% on Monday before settling at $63,890 as of 6:55 a.m. in London. Other cryptocurrencies like Ether and Solana also followed with gains, reflecting broader market optimism, Bloomberg reported.
The China with Its Economy
The increase coincides with China’s attempts to rekindle its flagging economy. But a much-awaited policy briefing over the weekend lacked specifics regarding the amount of fiscal stimulus the administration intends to provide.
Many economists are worried that these steps may not be enough to prevent deflation, and others are dubious about their efficacy. Following an unprecedented global rise, traders appear to be shifting money back into cryptocurrencies as Chinese equities calm off.
“Markets are likely interpreting the underwhelming China stimulus as good news for Bitcoin, as prior capital outflows into Chinese equities had pressured crypto prices,” said Caroline Mauron, co-founder of Orbit Markets, a digital-asset derivatives trading liquidity provider.
US Election and Bitcoin’s Momentum
The impending US presidential election is another reason for uplifting the rise of Bitcoin. Recently, prediction markets have given Republican contender Donald Trump better odds of winning than Democratic opponent Vice President Kamala Harris. In the upcoming months, Trump’s supportive attitude toward cryptocurrencies may inspire more confidence among investors, which could raise the price of Bitcoin.
Meanwhile, the bankrupt Mt. Gox cryptocurrency exchange declared a postponement of its creditors’ obligations for its outstanding assets, with the new deadline being October 31, 2025. This postponement allays worries about an abrupt divestment by creditors, hence relieving pressure on the supply of Bitcoin. Arkham Intelligence estimated $2.9 billion in Bitcoin assets remains.
“The recent uptick in Trump polling could magnify the positive price impact of good news, such as the delay in Mt. Gox repayments,” said Benjamin Celermajer, co-chief investment officer at Magnet Capital.
Can Bitcoin Hit $70K Before the US Election?
With Bitcoin currently stabilizing around $64,475.50, the question arises whether it can hit $70,000 before the November US election. Analysts point to historical trends showing October as a favourable month for cryptocurrencies, with an average 20% climb in the past decade, according to Bloomberg data.
Additionally, Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC, noted that October’s crypto strength usually accelerates in the latter half of the month.
Given these factors, along with mounting political speculation and shifting investor sentiment, the possibility of Bitcoin reaching $70K in the coming weeks remains on the table, especially if market conditions continue to favour digital assets as the election approaches.