China’s anticipated stimulus package is expected to drive a rise in Bitcoin and altcoins, with many analysts believing it could rejuvenate the cryptocurrency market.
According to Bitfinex analysts, the fiscal stimulus set to be announced on October 12 could have a positive impact on Bitcoin and the broader crypto landscape. They noted that increased liquidity could benefit riskier assets like BTC.
“We expect the substantial influx of fresh liquidity to positively affect all risk assets, including cryptocurrencies,” they stated. However, the exact details of China’s stimulus plans remain uncertain, and if they exceed expectations, market volatility could increase. Analysts believe the potential impact of these incentives hasn’t yet been fully factored into current prices.
China’s Finance Minister, Lan Fo’an, is expected to unveil the new stimulus package at a press conference tomorrow morning.
Three Key Catalysts for Bitcoin’s Potential Rally
ETC Group analysts have also shared their Bitcoin forecasts, highlighting that the global money supply has reached an all-time high, historically indicating a bullish trend for BTC. They identified three main catalysts that could support Bitcoin’s rally in the coming months: the historical dynamics of Bitcoin’s halving cycle, global economic recovery, and the upcoming US presidential election.
The analysts predicted potential price movements based on election outcomes: “If the election were held today, a Trump victory could lead to a 10.7% increase in Bitcoin’s price, while a Harris win might result in a 10.5% decline. However, it’s worth noting that Bitcoin has performed well during previous US presidential elections in 2012, 2016, and 2020, regardless of which party won.”