Bitcoin broke through $70,000 for the first time since June, as Tesla’s Elon Musk and others raised Corona-related financial worries to a new level. At the same time, a Wall Street crypto ‘revolution’ led by BlackRock, as well as a pivot towards dovishness by Federal Reserve policy, are creating an economic set-up in no way hostile to the rise of bitcoin, which has been moving much higher in recent days. Rumours of a $1.4 trillion stimulus package in China that could turn its cratering economy back into overdrive threaten to send bitcoin even higher.
Coupled with predictions that China’s actual levels of fiscal stimulus (to be confirmed by the NPC between 4 November and 8 November) could see Chinese demand-side stimulus to send the price of bitcoin much higher, it’s easy to see why bitcoin prices are still being held captive by the latest developments in the international political economy. Factor in further market predictions that with more monetary stimulus and an increase in investor risk appetite in China, the price of bitcoin would likewise go higher. Then layer on to these price-predictive potentialities speculations from market players such as Arthur Hayes at BitMex that all this Chinese fiscal stimulus combined with similarly relaxed Federal policies extending out to 2025 will create the ideal environment for a robust bitcoin and crypto bull market.
Source: Forbes
