Right now, we’re in the middle of the most bizarre cryptocurrency bull run in history. Bitcoin’s consolidation and the unpredictable performance of altcoins are making 2024 an entirely different beast compared to the bull runs of 2012, 2016, or even 2020.

Bitcoin (BTC) has been rolling between $53,000 and $74,000 since March when it broke its all-time high twice. Since then, we’ve been in a tight consolidation phase. Traders are watching closely because, historically, this level of consolidation is always followed by a massive surge in October. Some analysts predict Bitcoin might hit $290,000, which would mean a 320% jump from today’s price of about $64,000.

Institutional investors are pouring in money thanks to the introduction of Bitcoin spot ETFs. This institutional push is driving more demand, and with Bitcoin’s supply being super limited, increased demand consistently boosts its value. It’s basic supply and demand dynamics at work. MicroStrategy, for example, just threw another $472 million at Bitcoin, buying coins at $61,000 each. This shows the intense institutional interest right now due to Bitcoin spot ETFs.

Altcoins are crushing it, with some outperforming Bitcoin by up to 200%. Ethereum (ETH), Solana’s SOL, XRP, and BNB Chain’s BNB are all thriving right now. What’s really nuts is that altcoins are actively outperforming Bitcoin. In previous bull runs, Bitcoin always led the charge, but we’re looking at a significant gap right now. Meme coins have managed to completely dominate this bull cycle. Solana meme coins, in particular, are leading the charge. Meme coins have always been a cultural phenomenon in the crypto industry, but this time they’re literally driving investment trends in the market. Some analysts believe they could make or break the current bull run.

China decided to put $500 billion into an economic stimulus package, which pumped up the markets. Analysts are saying that it’s going to lead to more liquidity and boost confidence among investors. Historical data shows that when China moves big, the markets respond big. And that’s exactly what’s happening now.

Retail investors are back in full force. After a quiet stretch during the last bear market, they’ve returned with a vengeance. This is bringing a whole new level of excitement to the market. There’s even euphoria in the air, as some altcoins have gained over 200% in just a few weeks. People are calling this bull run more sustainable than past ones, though who knows? The numbers look good for now.

The stablecoin reserves on exchanges are super low, which is a sign of potential upward price pressure in crypto. With fewer stablecoins available, it suggests that traders are converting them into cryptocurrencies, increasing demand and potentially driving up prices.

Global economics and geopolitical tensions are also playing a role. Uncertainties in traditional markets and the possibility of more rate cuts from central banks make crypto look even better as an investment. Iran fired about 200 ballistic missiles at Israel, and Israel is threatening retaliation. These tensions have pushed down BTC during the first half of Asia trading hours Wednesday. Global equities and risk assets like Bitcoin took a hit as the Middle East conflict grows.

Bitcoin fell the most in over a month, while gold rose. The drop reached 6% at one point, and 24-hour losses were at 3.5%. That was the worst start for the asset’s historically most bullish month, according to Presto Research traders led by Peter Chung. “Last night’s BTC price action (BTC -4% vs. gold +0.8%) in the aftermath of Iran’s attack is puzzling, especially considering BlackRock’s recent pitch for BTC as a risk-off asset similar to gold,” they wrote. The reality is that the difference in these two assets’ short-term price actions reflects their different maturity phases.

Gold is a much more mature asset, with a 5,000-year history as a store of value, so there’s not much room left for incremental network effects. Bitcoin, on the other hand, shares the same attributes that make gold a good store of value (better in many cases), but with only a 15-year history. This means it’s in the early stages of mainstream adoption, and its narrative is still poorly understood.

The last trading day of September saw a slight dip in the market. Bitcoin fell 3.7%, landing at $63,451 after briefly touching $65,000. Crypto stocks did the same. Coinbase dropped by 6.8%, and MicroStrategy was down 4.3%. Analysts blame this on overbought conditions. Meanwhile, last week, the Bitcoin ETFs saw a combined net buying volume of 16,774 BTC. This is way more than the usual monthly supply of newly mined Bitcoin, which is 13,500.

Dogecoin (DOGE) led losses among major tokens with an 8% drop over the past 24 hours, according to CoinGecko data. XRP (XRP), Solana’s SOL, BNB Chain’s BNB, and Ethereum (ETH) lost as much as 6%. Smaller tokens with a market cap under $2 billion fared worse, with Sei Network’s SEI, memecoin Floki (FLOKI), and Starknet’s STARK falling as much as 16%.

Media coverage is ramping up too. Crypto is all over the news again, and that’s bringing more people into the market. The CoinDesk 20, a measure of the most liquid digital assets, had its worst drop in weeks, falling 4.7%. This shows that while there is increased participation, there is also increased volatility.

Federal Reserve Chairman Jerome Powell’s recent statements also shook investors, warning that future rate cuts are not set in stone. This uncertainty affects global equities and risk assets such as Bitcoin. The possibility of more rate cuts from central banks makes cryptocurrency investments more appealing to some investors. Analysts are watching to see how these central bank decisions will impact market liquidity and investor confidence.

We’re witnessing the strangest crypto bull run we’ve ever seen. Bitcoin’s consolidation, altcoins outperforming Bitcoin by 200%, institutional investors pouring in thanks to Bitcoin spot ETFs, and meme coins driving investment trends—all these factors are making this bull run unique. The combination of supply and demand dynamics, geopolitical tensions, central bank rate cuts, and both institutional and retail investor activity is creating a market environment unlike any before. Whether this bull run is more sustainable than past ones remains to be seen, but for now, the excitement and numbers are promising.

Taiwan’s Financial Supervisory Commission (FSC) has made a significant move. Now, professional investors can invest in foreign crypto ETFs through local securities firms. However, regular investors are still not allowed to join in. This change is aimed at high-net-worth individuals, institutional investors, and clients with significant assets. They can now use a method called “re-entrustment” to invest in these foreign crypto ETFs.

Only professional investors are allowed to invest in foreign crypto ETFs in Taiwan. These include institutional investors and high-net-worth people. Regular investors are kept out of this opportunity. The FSC wants to make sure that only those who understand the risks can invest. Securities firms must check if an investor is qualified before they make their first investment. They need to evaluate the investor’s experience, knowledge, and ability to handle the risks involved.

Securities firms in Taiwan have important responsibilities. They must have a proper system to check if investors qualify for investing in foreign crypto ETFs. Before an investor makes their first move, firms are required to evaluate their experience and knowledge about virtual assets. They also need to make sure that investors can handle the risks involved. Firms must train their staff regularly to stay up-to-date on crypto products. This way, employees can provide accurate information to clients.

The FSC has decided to keep regular investors out of investing in foreign crypto ETFs. Virtual assets like cryptocurrencies can be very volatile. Their prices can change rapidly, which can lead to significant losses. By limiting investments to professional investors, the FSC aims to protect regular people from these risks. Investors must also sign risk warning forms and get detailed information before making any investments.

Around the world, different countries have taken steps to approve crypto ETFs. The United States is ahead of the game with its 11 spot Bitcoin ETFs. Canada was one of the first countries to approve a Bitcoin fund. In April, after seeing America’s success, Hong Kong approved three crypto ETFs. Germany has also launched crypto ETPs, which work similarly to ETFs. Taiwan’s move to allow professional investors to invest in foreign crypto ETFs is a significant step in the same direction.

Taiwan has had a complicated relationship with cryptocurrency. After events like the FTX collapse and local fraud incidents, the FSC decided to tighten crypto regulations. Virtual Asset Service Providers (VASPs) now have strict rules to follow. In July, the FSC made it mandatory for VASPs to register for Anti-Money Laundering (AML) compliance under the Money Laundering Control Act. Without registration, VASPs cannot do business in Taiwan. This applies to both local operators and offshore firms wanting to offer crypto services in Taiwan.

VASPs are required to submit a compliance declaration to prove they are following the rules. This is especially important for money laundering prevention. The FSC demands operational transparency and consumer protection from these service providers. By enforcing these regulations, Taiwan aims to create a safer environment for cryptocurrency transactions.

Cryptocurrency transactions in Taiwan are subject to a 5% Value Added Tax (VAT). Sellers who are residents or companies must register for tax purposes unless their monthly sales are below NT$40,000, which is about $1,300. This tax applies to all cryptocurrency transactions, adding another layer of regulation to the industry.

In the global market, Bitcoin (BTC) has been on a winning streak. It has registered its first three-week winning trend since February. Traders are buying call options at the $75,000 strike price and beyond on the Deribit exchange. This indicates a bullish outlook for Bitcoin’s price. Investors are also selling put options, which suggests they expect the price to rise.

Several factors have contributed to Bitcoin’s recent price increase. China’s large stimulus announcement and inflows into U.S.-listed spot ETFs have helped maintain the upward trajectory. The inflows are equivalent to more than a month’s supply of newly mined BTC. This has created a bullish sentiment in the market.

Analysts believe that Bitcoin could break out of its six-month-long corrective trend. A break above $75,000 could lead to a swift rally through all-time highs toward $100,000. The last tranche of call buyer activity is concentrated at the $100,000 strike price for the December 27, 2024 expiration. This suggests that traders are anticipating significant price acceleration.

The bullish flow of increased call buying and put selling suggests expectations that prices will soon break out. Investors are optimistic about Bitcoin’s future. The expanding triangle pattern, referred to by veteran analyst Peter Brandt, indicates that the broader uptrend from October 2023 lows under $30,000 has resumed.

Taiwan’s decision to allow professional investors to invest in foreign crypto ETFs is a significant development. By tightening regulations and requiring AML compliance, the FSC aims to protect investors and ensure transparency. At the same time, the global cryptocurrency market is experiencing bullish trends, with Bitcoin potentially breaking above $75,000. These developments could have lasting impacts on how cryptocurrencies are traded and regulated in Taiwan and around the world.

The bitcoin price has soared above $65,000. This surge comes after BlackRock, the world’s largest asset manager, got the green light for a new bitcoin initiative. At the same time, Federal Reserve Chair Jerome Powell issued a “radical” statement that has traders buzzing. Many are now betting that bitcoin could reach $100,000 following the U.S. presidential election.

Bitcoin options interest is growing, especially around the $100,000 mark. Geoffrey Kendrick, head of crypto research at Standard Chartered, noticed this trend. “Notably, the build-up has come faster than can be explained just by higher bitcoin prices,” he said. “The jump in open interest at the $100,000 strike this week indicates something else is driving participants.” Traders are optimistic that the bitcoin price could surge to $100,000 after the election.

U.S. Vice President and 2024 Democratic Party nominee Kamala Harris has promised to encourage innovative technologies like AI and digital assets. At a Wall Street fundraiser reported by Bloomberg, she said that if she wins the White House in November, she would support crypto businesses while protecting consumers and investors. This suggests that a Harris victory could be positive for bitcoin and the broader cryptocurrency market.

Kendrick believes that either outcome of the November 5 election will benefit bitcoin. “These comments suggest that regardless of who wins, bitcoin will benefit,” he wrote. The bitcoin and crypto market has been leading in performance recently, especially after the Federal Reserve’s historic interest rate cut last week. This has increased positive sentiment among investors.

If former U.S. President Donald Trump wins the election, Kendrick predicts the bitcoin price could surge to $125,000. Even if Harris wins, he expects bitcoin to climb to $75,000. Trump has embraced bitcoin and crypto this year, promising to create a U.S. bitcoin strategic reserve if elected. He is also backing a crypto project led by his sons, Don Jr. and Eric.

Trump’s commitment to create a U.S. bitcoin strategic reserve has excited many in the crypto community. His sons are leading a crypto project that has gained significant attention. This shows a strong commitment to advancing digital assets in the United States. A Trump victory could lead to major developments in the cryptocurrency market.

Kendrick wrote earlier this month that a Harris victory might cause an initial price drop. “A Harris victory would likely trigger an initial price decline,” he said. “But we would expect dips to be bought as the market recognizes that progress on the regulatory front will still be forthcoming, and as other positive drivers take hold.” Investors may see any price dips as buying opportunities.

American investors are regaining their appetite for risk. New exchange-traded funds (ETFs) offering leveraged positions on MicroStrategy stock are booming. MSTX, launched in August, now has $357.6 million in assets under management. This fund gives investors daily leveraged investment results of 1.75 times the daily percentage change in MicroStrategy stock.

Another ETF, MSTU, launched last week. It offers two times the leveraged investment results. The product has seen huge inflows and now has over $80 million in assets. These ETFs are “long leverage” funds, meaning they use debt to amplify their positions. This can lead to greater returns, but also greater losses. Investors are showing significant interest in these risky investments.

Bloomberg ETF analyst Eric Balchunas commented on the popularity of these leveraged ETFs. He was surprised by the rapid growth. “I didn’t think there was room for both (especially so quickly),” he wrote on Twitter, describing their popularity as “wild.” He previously called such products the “ghost pepper of ETF hot sauce” due to their extreme volatility.

MicroStrategy is a public company known for its data-analyzing software. In 2020, it started putting bitcoin on its balance sheet to generate returns for investors. This strategy has attracted attention and led to the creation of leveraged ETFs focused on its stock. The company’s embrace of bitcoin has made it a focal point for investors interested in cryptocurrency.

Bitcoin options trading is showing a rapid build-up at the $100,000 strike price. This indicates that traders are betting on a significant price surge. The interest in options around this price suggests strong market confidence. Bitcoin options interest “has been building mostly around the round figure of $100,000,” Kendrick noted.

The Federal Reserve’s recent interest rate cut has impacted the bitcoin price rally. The crypto market has been leading in terms of performance following the Fed’s historic decision. Jerome Powell’s “radical” statements have also played a role in boosting investor confidence. These factors contribute to the positive outlook for bitcoin.

Kamala Harris’s support for innovative technologies like AI and digital assets has been well-received. Her comments suggest that if she becomes president, there could be favorable regulations and growth opportunities for digital assets. “These comments suggest either outcome on 5 November will end up being bitcoin positive,” Kendrick wrote.

As the U.S. presidential election approaches, traders are optimistic about bitcoin’s future. Whether Trump wins and pushes for a bitcoin strategic reserve or Harris wins and encourages crypto businesses, bitcoin seems poised for growth. With traders betting on a $100,000 price target and investors embracing leveraged ETFs, the crypto market is entering an exciting phase. The impact of the election, Federal Reserve policies, and growing investor interest all point to a potentially significant surge in the bitcoin price.

Bolivia has seen a big jump in virtual asset trading since lifting its Bitcoin ban. The central bank’s decision to allow cryptocurrencies has changed the market quickly. In just three months, from July to September, the country reported a 100% increase in average monthly virtual asset trading compared to the previous 18 months. This surge happened right after the central bank lifted a 42-month ban on Bitcoin and other cryptocurrency payments, letting financial institutions conduct transactions with digital assets.

This change allowed about $15.6 million in virtual assets to be traded monthly in Bolivia during that period. This amount was 105% higher than what was traded before the ban was lifted. Altogether, the last three months saw about $48.6 million in virtual asset transactions. That’s more than what was traded in the entire six months before the ban was lifted. A lot of these transactions were made with stablecoins, showing their growing popularity in Bolivia’s financial market.

The central bank, known as Banco Central de Bolivia (BCB), explained that the rise in virtual asset trading directly resulted from ending the ban on Bitcoin and cryptocurrency payments. They banned Bitcoin completely in 2014 but decided to change their stance in June. The acting president of the BCB, Edwin Rojas Ulo, said, “BCB is paving the way for the use of cryptoassets in Bolivia. Our country is taking giant steps towards an economic future with greater use of accessible digital instruments.” This statement shows that Bolivia is trying to create a more open and modern financial market by allowing cryptocurrencies.

One major sign of how popular cryptocurrencies have become is the increase in the number of cryptocurrency transactions. Over the past three months, the number of transactions jumped by 141% compared to the previous six months. This rise is partly because six more financial institutions started offering virtual asset services between July and August. These financial institutions allowed banks to handle cryptocurrencies through approved electronic channels, making it easier for people and businesses to use digital assets in Bolivia.

Edwin Rojas Ulo explained that this change provides Bolivians with more options for processing transfers and payments, especially for international commerce. He believes that integrating virtual assets into the financial system will help Bolivian companies take part in international trade more effectively. The use of virtual assets offers an alternative mechanism for processing transfers, whether for personal transactions, business payments, or international trade.

Since the ban was lifted, Bolivia’s central bank has also made efforts to educate people about virtual assets and how to use them. They have included information about cryptocurrencies in their Economic and Financial Education Program. In total, the central bank has conducted 33 workshops across the country, reaching more than 3,000 people. This education initiative aims to help Bolivians understand the potential of digital assets and how they can use them safely and effectively in their daily lives.

The rise in cryptocurrency trading has brought more attention to Bolivia’s financial market, showing that digital assets can be a part of the country’s economy. The central bank’s efforts to include virtual assets in its financial education programs demonstrate Bolivia’s commitment to making digital assets more accessible. It also reflects the country’s goal to develop an economic future that includes modern financial tools like Bitcoin and stablecoins.

The story of Bolivia’s growing cryptocurrency market is happening at the same time as important changes in the global economy. For example, China recently announced a big stimulus package, which included lower interest rates and lower reserve requirements for banks. This move has had a big impact on global financial markets, including the cryptocurrency market. The package led to a sharp rise in China’s stock market, with the blue-chip index CSI 300 going up by 15.7% and the Hang Seng index rising by about 13%. These changes in China have also influenced the global crypto market, helping to drive interest in Bitcoin and other digital assets.

As a result of these international changes, the inflow into spot Bitcoin ETFs has been positive all week, with a net inflow of $612.1 million so far, according to Farside. This trend has helped Bitcoin continue its upward trend, with a 55.1% increase so far this year, while Ethereum has grown by 16.4%. Analysts believe that both Bitcoin and Ethereum will keep rising, especially now that both major U.S. presidential candidates support blockchain technology.

In Bolivia, the focus is on how cryptocurrency can be used to improve the country’s economic situation. By lifting the Bitcoin ban, the central bank has made it easier for people to use digital assets. This move has also made it possible for more financial institutions to offer virtual asset services, helping to build a more inclusive financial system.

Bolivia’s decision to allow cryptocurrency trading reflects a larger trend of countries recognizing the importance of virtual assets. As more people start to understand and use digital assets, there will likely be even more growth in Bolivia’s cryptocurrency market. The country’s experience shows that lifting restrictions on Bitcoin and other cryptocurrencies can lead to significant changes in how people handle money and investments.

Bolivia’s inflation rate has remained relatively low compared to other Latin American countries, with a rate of 2.58% in 2023. At the same time, the Bolivia boliviano has lost only 2.4% of its purchasing power against the U.S. dollar over the past five years. These stable economic conditions make Bolivia an interesting case for how virtual assets can fit into a country’s economy.

Bolivia’s move to lift the Bitcoin ban has not only increased trading but also opened up new opportunities for international commerce. By allowing financial institutions to offer virtual asset services, the country is positioning itself to take advantage of global trends in cryptocurrency adoption. This is expected to help Bolivian companies participate more actively in international trade, giving them more tools to compete in the global market.

The central bank’s focus on education also plays a big role in ensuring that the public understands how to use virtual assets safely. As more people learn about cryptocurrencies, it will be easier for them to adopt these digital tools in their everyday lives. This can help Bolivia develop a more modern financial system that benefits everyone.

Bolivia’s decision to lift the Bitcoin ban has led to a massive rise in virtual asset trading and increased the number of cryptocurrency transactions. The country’s central bank has taken steps to educate the public about digital assets, helping to create a more informed population ready to participate in the growing world of virtual assets. As Bolivia continues to embrace cryptocurrencies, it could become a leading example of how digital assets can be integrated into an economy, offering new opportunities for both individuals and businesses.

Bitcoin has once again made headlines by breaking the $65,000 level as the United States economy shows strong growth. The digital currency’s price surge is closely tied to the latest economic data, which reveals that the US Gross Domestic Product (GDP) grew by 3% this quarter. This growth is a significant increase from the previous quarter’s 1.6%, as reported by the Bureau of Economic Analysis (BEA). The news has sparked excitement among investors, leading to a Bitcoin price surge that reflects the bullish sentiment in the market.

The US GDP growth at 3% is a clear indicator that the economy is recovering from the impacts of the COVID-19 pandemic. Increased consumer spending and business investments have contributed to this growth. As the economy strengthens, investors are looking for assets that can offer high returns. Bitcoin, often seen as a hedge against inflation and a risk-on asset, has become an attractive option. The cryptocurrency’s value surged following the 3% US GDP growth report, showcasing how economic indicators can influence Bitcoin prices.

Improvements in the US job market have also played a significant role in Bitcoin’s price surge. The US Department of Labor reported a decrease in initial jobless claims, which fell by 4,000 to a seasonally adjusted 218,000 for the week ending September 21. This reduction in initial jobless claims suggests that labor market conditions are improving. The four-week moving average of weekly jobless claims also fell by 3,500 to 224,750. These figures indicate a positive trend in the job market, which correlates with increases in Bitcoin prices.

The combination of strong GDP growth and job market improvements has created a positive US economic outlook. This outlook boosts bullish sentiment on Bitcoin, leading to significant price increases. Bitcoin hit a monthly high after US GDP growth rose to 3%, edging close to $65,500 and marking a 3% increase in the last 24 hours, according to TradingView statistics. The cryptocurrency has gained over 1,000 points since the GDP numbers were released, demonstrating the strong link between economic performance and cryptocurrency markets.

Investors are optimistic about the future, and this bullish market sentiment is influencing Bitcoin prices. With the US economy on solid footing, many are turning to Bitcoin as a promising investment. The cryptocurrency’s market capitalization has increased, reflecting the influx of new investors and capital. Over 90% of BTC holders are currently in profit, according to recent data. This high level of profitability is attracting more attention to Bitcoin but also raises concerns about potential market corrections.

Monetary policy adjustments in both the United States and China have had a significant impact on global markets and Bitcoin’s price. In the US, the Federal Reserve (Fed) made a surprising move by cutting interest rates by 50 basis points. This decision, the first of its kind since the COVID-19 pandemic began, has lowered borrowing costs and encouraged investment in risk-on assets like Bitcoin.

The Fed’s interest rate cut of 50 basis points was larger than the previously expected 25 basis point reduction. Traders anticipate another cut at the Fed’s next meeting on November 7, with current betting favoring another 50 basis point reduction, according to the CME FedWatch Tool predictions. The anticipation of further interest rate reductions has fueled expectations of relaxed global monetary policies, contributing to Bitcoin surging past $64,000 earlier this week. These monetary policy adjustments have significant implications for the economy and financial markets.

Meanwhile, in China, authorities are considering injecting 1 trillion yuan ($142 billion) into major state banks to stimulate lending and economic growth. This potential move would be China’s largest capital injection since 2008. The funding, sourced from new sovereign bonds, aims to counteract slowing economic performance and boost liquidity. Such stimulus measures in China have a global impact, influencing investor behavior and market dynamics. Increased liquidity and reduced borrowing costs could benefit risk-on assets like Bitcoin, as investors seek higher returns.

As Bitcoin’s price surges past $65,000, over 90% of BTC holders are now in profit. This level of profitability is significant, but it could also pose a risk for the cryptocurrency. When a high percentage of investors are in profit, there is a possibility of increased selling as they realize gains. This profit realization by investors can lead to potential price corrections, affecting the overall market capitalization of Bitcoin.

Historically, when the proportion of profitable Bitcoin holders reaches such high levels, the market has experienced corrections. For example, in July, when over 90% of holders were in profit, Bitcoin’s price later crashed as many investors sold their holdings. This pattern suggests that while current profits are encouraging, they could also lead to increased volatility in the Bitcoin market. Investors should be cautious and consider the risks of potential price corrections due to profit-taking.

The recent surge in Bitcoin’s price has renewed investor interest in Bitcoin Spot ETFs (Exchange-Traded Funds). Spot ETFs allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency. The potential approval of Bitcoin Spot ETFs by regulators has been a topic of discussion, as it could make investing in Bitcoin more accessible to a broader audience. This renewed interest could further drive demand for Bitcoin and impact its price.

Global markets have been reacting to the monetary policy adjustments in the US and China. China’s Shanghai Composite Index jumped another 3.6% and is on track for its best week in a decade. European shares rose about 1%, and US stocks are also in the green, though they are off their best levels hit earlier. These movements highlight how interconnected global economies are and how policy decisions can have widespread effects. Investors are closely watching these developments, as they can influence asset prices, including cryptocurrencies and traditional markets.

The news also moved prices for precious metals, with gold rising to a record high above $2,700 per ounce and silver hitting its strongest level in 12 years. This precious metals rally reflects increased demand amid global market shifts. Investors often turn to gold and silver as safe-haven assets during times of economic uncertainty or significant monetary policy changes. The rally in precious metals indicates that investors are seeking to diversify their portfolios to manage risk.

While Bitcoin continues to dominate the headlines, other cryptocurrencies have also seen significant movements. Cardano (ADA), Avalanche (AVAX), and NEAR Protocol (NEAR) have all outperformed Bitcoin’s advance in the recent market surge. On the other hand, Ethereum (ETH) has modestly underperformed compared to Bitcoin. The broader crypto market was higher by 1.6% over the same time frame. These variations highlight the diverse performance within the cryptocurrency market.

Market participants are closely watching the CME FedWatch Tool predictions, which indicate traders anticipate another Fed rate cut at the November meeting. The tool suggests a high probability of another 50 basis point reduction in interest rates. These predictions influence investor expectations and can impact asset prices, including Bitcoin and other cryptocurrencies.

Bitcoin breaking the $65,000 level as the US economy grows 3% highlights the strong connection between economic indicators and cryptocurrency markets. Improvements in the US job market, bullish market sentiment, and monetary policy adjustments in the US and China have all contributed to Bitcoin’s price surge. While over 90% of BTC holders are in profit, caution is advised due to the potential for price corrections from profit-taking. The renewed interest in Bitcoin Spot ETFs and the rally in precious metals like gold and silver underscore the dynamic and interconnected nature of global financial markets. Investors should stay informed about economic indicators, monetary policies, and market trends to make well-informed decisions.

Bitcoin’s Rally After China’s Stimulus Package

Bitcoin experienced a significant rally following announcements of the stimulus package by the People’s Bank of China (PBOC). Many analysts believe this is just the beginning, with predictions of a possible breakout toward $78,000 in the coming weeks. This article explores how China’s latest economic stimulus and central bank actions impact Bitcoin and why this could lead to even more growth in the cryptocurrency market.

China’s Stimulus Package and Bitcoin

On September 24, the People’s Bank of China announced a plan to inject around $140 billion into its financial system by cutting the reserve requirement ratio (RRR) by 50 basis points. This is part of China’s efforts to boost its struggling economy and real estate market. These measures also include lowering borrowing costs and easing property purchase rules to support the real estate sector.

As central banks worldwide pay close attention to China’s actions, Jamie Coutts, chief crypto analyst at investment management firm Real Vision, claims that China’s latest stimulus package is a big deal for Bitcoin. He predicts it could even influence other central banks to follow the same path, which could be a game-changer for Bitcoin prices.

Coutts stated, “The bottom is in for global central bank liquidity for this cycle. Sit back and watch the other central banks fall into line.” In simpler terms, he means that central banks around the world might start injecting more money into their economies, just like the PBOC.

Bitcoin’s Past Response to China’s Economic Stimulus

It’s not the first time Bitcoin has reacted positively to China’s economic stimulus measures. For example, the PBOC injected $367.7 billion through reverse repos in October 2023 and another $140 billion in January 2024 by reducing the RRR by 50 basis points. After these actions, Bitcoin’s price soared by more than 100%, showing a clear relationship between Chinese stimulus and Bitcoin’s growth.

Even though China banned crypto mining back in 2021, the connection between Bitcoin and Chinese liquidity remains strong. This shows how the cryptocurrency’s performance is still tied to global liquidity conditions, and China’s recent measures could push investors to take on more risk by investing in assets like Bitcoin.

Why Central Bank Liquidity Matters for Bitcoin

Bitcoin operates in a credit-based fiat fractional reserve system, where debasement, or the reduction of currency value, is seen as a natural part of the process. When central banks, like the PBOC, inject more money into the economy, it often means that the value of fiat money drops. As a result, investors look for alternatives, such as Bitcoin, to protect their wealth.

This trend is why analysts believe central bank liquidity boosts Bitcoin demand. When more money is available in the financial system, people tend to invest in risk assets like Bitcoin, expecting higher returns. Therefore, China’s latest stimulus package could spark more investment in Bitcoin, as other central banks may start following China’s example.

Technical Analysis: Bitcoin’s Bull Flag Pattern

Adding to the excitement is the technical analysis of Bitcoin’s price movements. Currently, Bitcoin’s price chart shows a “bull flag” pattern. This pattern happens when an asset’s price moves upward sharply, then consolidates in a descending channel. In simpler terms, Bitcoin has been moving sideways after a big rally, and now it looks ready for another breakout.

If Bitcoin manages to break above this pattern’s upper trendline, analysts predict it could hit $78,000, a potential new record high. However, if it fails to break out, Bitcoin’s price might fall back down to its lower trendline, around the 0.0 Fibonacci retracement level. This retracement pattern is often used to predict potential price levels based on past movements, giving traders more insight into possible outcomes.

How Inflation and Central Bank Policies Affect Bitcoin’s Growth

For Bitcoin to reach its new all-time high, it may need to rise above $80,000 when adjusted for inflation. Inflation is another key factor driving Bitcoin’s growth, as traditional fiat currencies lose value over time. The more central banks inject liquidity into the system, the higher inflation rises, making Bitcoin a more attractive investment for those looking to safeguard their wealth.

As inflation pressures increase globally, investors are shifting their focus to assets like Bitcoin, which has a fixed supply of 21 million coins. This scarcity makes it less likely to lose value over time, unlike fiat currencies that can be printed endlessly.

Bitcoin Whales Are Waking Up

Recently, several long-dormant Bitcoin whales, who mined Bitcoin in its early years, have become active again. One such whale, who mined during the Bitcoin network’s earliest months, moved 10 BTC (worth $630,000) to the cryptocurrency exchange Kraken. This miner holds about $77 million worth of BTC mined during Bitcoin’s first months, which means their actions could significantly impact the market.

According to analysts at Arkham Intelligence, this isn’t the first time a Satoshi-era Bitcoin miner has “woken up” recently. Another miner, who held at least $16 million worth of Bitcoin since 2009, also transferred their coins to a different address. These activities raise questions about whether these early miners plan to sell their Bitcoin holdings, which could impact the market.

Why Are Bitcoin Whales Selling Now?

Bitcoin whales, especially those who have held their assets for many years, often sell their coins when they believe the price has reached a profitable level. As Bitcoin’s value increases, long-term holders might feel more incentivized to cash in on their investments. This behavior is common and usually happens when Bitcoin shows signs of an upcoming rally or after a significant price surge.

Analysts have noted that Bitcoin transfers to centralized exchanges like Kraken often indicate an intention to sell. While it’s unclear why these whales are moving their funds, their actions add an element of uncertainty to the market, especially when Bitcoin’s price is showing signs of a potential breakout.

China’s Impact on Bitcoin Mining and Liquidity

Although China banned crypto mining in 2021, the country’s influence on Bitcoin is still significant. Its economic policies, like stimulus packages and liquidity injections, continue to affect Bitcoin prices. For example, China’s recent stimulus has pushed up Bitcoin’s value, proving that global liquidity trends play a big role in cryptocurrency markets.

The PBOC’s moves, including lowering the reserve requirement ratio and providing more liquidity, create a ripple effect across financial markets, including cryptocurrencies. As China pumps more money into its economy, investors are likely to seek assets that offer higher returns, like Bitcoin.

What’s Next for Bitcoin?

With China’s stimulus measures and the potential influence on other central banks, Bitcoin could be headed toward a significant breakout. Analysts believe that the bull flag pattern is a strong indicator of this upward trend, with predictions pointing to $78,000 or more. However, the recent activity of early Bitcoin whales adds an element of uncertainty that could either propel Bitcoin’s price higher or lead to short-term selling pressure.

As central bank liquidity increases globally, and inflation continues to rise, Bitcoin stands out as a valuable asset for investors looking to protect their wealth. While the relationship between Bitcoin and China may not be as direct as before, the PBOC’s actions still have a strong influence on the cryptocurrency market.

Bitcoin’s rally after China’s latest stimulus package suggests that we could be in for an exciting period ahead. Whether this will lead to a new all-time high or just another chapter in Bitcoin’s journey remains to be seen. One thing is clear: Bitcoin’s connection to global liquidity conditions makes it a critical asset to watch as central banks continue to shape the economic landscape.