Bitcoin (BTC) has surged past $65,000 in the past 24 hours, driven by stock market volatility following strong U.S. labor force data and new economic stimulus reports from China.
Global stock markets rose after China’s leadership pledged to stimulate its economy with additional fiscal measures, while positive labor market data in the U.S. further boosted investor optimism. Jobless claims fell by 4,000 last week to 218,000, the lowest in four months, according to the U.S. Labor Department. On the same day, China’s Politburo said it was important to “further enhance the focus and effectiveness of policy measures” to support the economic recovery.
Commenting on the developments, Wintermute OTC trader Jake Ostrovskis highlighted the impact of China’s latest stimulus efforts. “China has rolled out another major stimulus measure, with the Politburo pledging to boost fiscal spending through $284 billion in special government issuance and pledging to implement ‘strong’ interest rate cuts,” Ostrovskis said. “Improved liquidity environment is driving structural upside, and US spot Bitcoin ETFs posted inflows for the fifth day.”
This combination of positive economic news helped Bitcoin’s price rise, allowing it to retest the critical $65,000 threshold. However, Ostrovskis warned that the rally could face challenges ahead. “$65,000 is very important. If Bitcoin cannot hold this level, it could put significant downward pressure on prices,” Ostrovskis said, adding that the current accumulation of open interest could expose the market to sharp corrections.
*This is not investment advice.
