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Crypto Writer
Arslan Butt
Crypto Writer
Arslan Butt
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Bitcoin price is showing renewed strength, trading near $64,583 after benefiting from recent global economic developments. Notably, the People’s Bank of China (PBOC) has introduced a new stimulus package to boost its slowing economy, which could significantly impact the cryptocurrency market.
Historically, increased liquidity from central banks has driven demand for riskier assets like Bitcoin. With China’s economic stimulus adding to global liquidity and the potential for Federal Reserve rate cuts, market analysts are speculating whether Bitcoin could be on the verge of hitting new all-time highs.
However, concerns about the broader economic outlook and ongoing global uncertainties could also influence Bitcoin’s price trajectory.
How China’s Economic Stimulus Could Affect Bitcoin’s Price
The People’s Bank of China (PBOC) has introduced a major stimulus package, the largest since the COVID-19 pandemic. This includes lowering reserve requirements for banks and cutting mortgage rates by 50 basis points.
Some believe this influx of liquidity could benefit Bitcoin, similar to how past Federal Reserve rate cuts boosted Bitcoin’s price. After the announcement, Bitcoin saw a modest rise from $63,000 to $64,500.
However, despite the stimulus, analysts remain cautious.
- Crypto trading has been banned in mainland China since 2021.
- Consumer confidence remains weak, limiting Bitcoin’s growth potential.
While liquidity might help, experts expect a minimal immediate impact on Bitcoin’s price.
Bitcoin Price Boosted by Strong U.S. Data and Potential Fed Rate Cuts
Bitcoin is trading above $64,500, bolstered by positive U.S. economic data. Key figures such as a steady 3% GDP, slightly better than the expected 2.9%, and lower-than-expected unemployment claims of 218,000 (vs. 222,000) have eased concerns about economic contraction.
However, continuing unemployment claims rose to 1.834 million, surpassing forecasts, which could prompt the Federal Reserve to rethink its approach to interest rate cuts.
The odds of a 50 basis point cut at the Fed’s November 7 meeting have increased to 63%, further supporting Bitcoin’s price outlook.
- US GDP at 3%, easing contraction fears
- Unemployment claims are lower than expected
- Fed’s 50 bps rate cut chance rises to 63%
Arthur Hayes: Quantitative Easing to Boost Bitcoin and Crypto Markets
Arthur Hayes, co-founder of BitMEX, predicts that global quantitative easing (QE) will drive Bitcoin and other cryptocurrencies higher.
As governments print more money to stabilize their economies, Hayes believes much of this liquidity will flow into Bitcoin, making it a hedge against excessive government spending.
Hayes advises investors to accumulate Bitcoin by earning, mining, or borrowing fiat at low rates but warns against using leverage, citing potential risks.
While optimistic about Bitcoin’s performance in easing monetary conditions, he cautions that volatility could return, creating financial instability.
- QE expected to increase Bitcoin demand
- Hayes recommends cautious Bitcoin accumulation
- Warns of potential volatility amidst easing
Bitcoin Price Outlook
Bitcoin (BTC/USD) has an immediate resistance at $65,261, followed by $65,862, and a stronger hurdle at $66,539.
A breakout above these levels could push Bitcoin toward fresh highs. On the downside, immediate support rests at $64,423, with further backing at $63,802 and $63,530, where the 50-day EMA aligns, offering robust support for the uptrend.
The Relative Strength Index (RSI) is at 67.90, nearing overbought territory, which may signal short-term profit-taking.
Meanwhile, the 50-day EMA at $63,530 remains a key, indicating continued bullish momentum as long as BTC holds above this mark.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
