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Bitcoin hits a seven-day high as Chinese stocks rally

Bitcoin is getting a surge of fresh air after news from China about some juicy economic stimulus got markets buzzing over the weekend. The world’s top crypto popped to $64,300 late Sunday evening, up 2.5% on the day. That’s the highest it’s been since October 7. The sudden spike has hodlers grinning, and it’s all thanks to China vowing to pump up its debt to keep their faltering economy afloat.

The Asian markets, though, didn’t all pop bottles in celebration. China’s Shanghai Composite Index got a 1.6% boost, while the Hang Seng in Hong Kong took a 0.4% dip. Over in Japan, the Nikkei climbed 0.57%, thanks to tech stocks holding the line. But South Korea and Australia couldn’t make up their minds and saw some choppy action.

Stimulus Hopes and Unanswered Questions

China’s central bank dropping promises to “significantly increase” debt over the weekend had investors squinting at their screens, waiting for the full tea on just how big the cash splash will be. But Beijing’s keeping its cards close, so no deets were spilled on how much money they’re about to rain down.

The move follows China’s previous liquid firehose moment late last month when they shot $113 billion into the system to help out their stumbling stocks. And it’s not just stocks getting the green light—China also told banks they could loosen up and let folks buy second homes easier, hoping to juice their real estate market, too.

Still, Chinese stocks have been snoozing compared to their U.S. counterparts. Shanghai’s up over 20% in the last month, but if you zoom out, they’re only up 6.7% for the last 12 months, compared to the S&P 500 flexing at 34.3%.

Macro Tailwinds Favor Bitcoin

For Bitcoin, China’s moves could be the magic potion that keeps its price riding high for the rest of the year. With U.S. interest rates potentially slashed, an election on the horizon, and the whole FTX payout saga sprinkling even more spice on the crypto landscape, it’s setting up a whirlwind Q4.

Adding fuel to the fire, recent U.S. nonfarm payroll figures smashed expectations with 254,000 jobs added in September, blowing past forecasts of 170,000. It’s got folks worried that the Fed could pump the brakes on its planned rate cuts, as stronger employment might crank inflationary heat.

Speaking of inflation, the latest Consumer Price Index showed a 2.4% year-on-year rise, and while that’s only slightly above the forecast, the Fed might still slow its roll on easing up if things get too hot to handle.

Crypto market watchers are keeping their eyes peeled for what happens next.