The positive start to the week for cryptocurrencies, driven by the rally in BTC and the favorable performance of altcoins, reflects growing market confidence in the face of China’s recent fiscal measures.
Cryptocurrencies They start the week in a positive way, with Bitcoin (BTC) flirting with the US$65,000 after a notable increase over the weekend and especially in the Asian session on Monday. Since its low on Thursday, October 10, BTC increased its value by more than $5,000.
Optimism is not limited to BTC, as other altcoins also show solid performance. Ethereum (ETH) registers an increase of close to 3% in the last 24 hours, exceeding US$2,500, while Solana (SOL) appreciates 4%, leading the increases among other large tokens such as XRP, DOGE, AVAX and SHIB. However, some cryptocurrencies, such as Toncoin (TON) and Cardano (ADA), have fallen, although they are beginning to recover at the beginning of the European day.
Cryptocurrencies: what’s behind the rally
One of the factors that has contributed to this rally in digital assets is the recent announcement by China’s Ministry of Finance, which revealed new measures to stabilize the real estate sector and support local governments with debt.
Finance Minister Lan Fo’an mentioned that local governments will be allowed to issue more special bonds to acquire unsold land and housing, in addition to suggesting that Beijing could issue larger debt to finance these plans.
Although this news has impacted the market, The effect was not as significant as expected.. Chinese stocks have experienced volatility, while European stock markets show moderate movements. Despite this, the measures have been well received by some analysts, who have adjusted upwards their GDP projections for the Asian giant, although they still place them below 5%.
However, there are those who remain cautious. The lack of specific details could disappoint the market and cause further declines in Asian stocks, prompting investors to seek refuge in crypto markets. Some analysts suggest that the behavior of operators will depend on the direction the Fed takes.l (Fed) after a September CPI in the US that has been somewhat disappointing. Currently, the market anticipates two cuts of 25 basis points in the next meetings of the US central bank.
Additionally, earnings season will be crucial for the performance of cryptocurrencies, given its link to equities, as well as the November US presidential election. There are mixed opinions on the impact the election result will have on BITCOIN, although some analysts believe that a victory for Donald Trump could favor digital assets more than a victory for Kamala Harris.
From a technical point of view, Bitcoin faces key resistance at $66,000. After a double rebound in the $60,000 support zone, the price remains in a wide range. If BTC manages to overcome the resistance of $66,000, the short-term objectives are set at $68,500 and later at $72,000. Some accumulation of investment is observed by strong hands and a slight increase in exchange-traded fund (ETF) volume, although more significant volume is needed for a decisive attack on that resistance zone.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
