Bitcoin has experienced a notable surge, reaching $63,000 after a dip to $59,000 earlier this week. This 7% increase reflects investor optimism ahead of an expected China’s fiscal policy update , set to be released later today. With the markets closed at the time of the announcement, traders are eager to assess the implications for the crypto landscape.
Altcoins Rally Amid Market Optimism
In addition to Bitcoin’s rise, other cryptocurrencies have also seen significant gains. Solana and Avalanche have reported profits of 6% to 8%, while Render tokens have also contributed to the upward trend. However, Uniswap faced a setback, experiencing negative daily returns due to the platform’s plans to launch its own layer-2 network.
Crypto-Related Stocks on the Rise
The positive sentiment in the crypto market has extended to related stocks as well. Bitcoin mining companies, including Marathon Digital Holdings (MARA) and Riot Platforms, have seen their shares rise by approximately 5% to 10%. Coinbase‘s stock also surged by 7%. MicroStrategy, which positions itself as a leading Bitcoin development firm, soared by 16%, marking its highest share price since March 2020 and reflecting a premium in its share price compared to its Bitcoin holdings.
Analysts Highlight Changing Influences
Analysts David Duong and David Han from Coinbase have noted a shift in macroeconomic factors affecting crypto prices. Previously dominated by monetary policy, they now believe the outcome of the upcoming U.S. election and China’s fiscal policy will play crucial roles in market movements. With investors hoping for substantial monetary support for China’s struggling economy, the anticipated fiscal update could significantly influence the virtual asset market.
Markus Thielen, CEO of 10x Research, stated that despite recession fears, a resilient U.S. economy could provide opportunities for volatile assets like cryptocurrencies. As traders prepare for the upcoming updates, the stage is set for potential gains in the crypto sector as the year draws to a close.
