Bitcoin Nears $63.5K as China’s Economic Support Plan Disappoints

Bitcoin’s value approached $63,500 on Saturday, coinciding with underwhelming fiscal stimulus announcements from China. The lackluster support measures failed to boost investor confidence in Chinese markets, potentially benefiting cryptocurrencies.

China’s Finance Minister, Lan Fo’an, outlined plans to aid the struggling property sector and local governments. However, the announcement lacked specifics on stimulating domestic consumption, a key factor in averting a deflationary trend in China’s economy.

While the Chinese government did increase its debt issuance, the absence of a comprehensive fiscal stimulus strategy left analysts skeptical about its market impact. This uncertainty may encourage investors to maintain their cryptocurrency holdings rather than shifting capital to China-related assets.

Bitcoin briefly surpassed $63,400 on Friday before settling at $62,400, but its upward trend persists. A move above $63,500 could signal the end of the recent correction and a resumption of the rally that began from early September lows of $53,000.

The next significant resistance for Bitcoin lies around $69,000, with support at the October 10 low of $58,890.