China’s interest rate cuts have unleashed huge gains, global stock markets have surged, and Bitcoin has reached 64K

Yesterday (9/24), spurred by a new round of economic stimulus measures from the People's Bank of China, global stock markets almost closed higher, with the S&P 500 and the Dow Jones Industrial Index reaching new highs. Cryptocurrencies such as Bitcoin and Ethereum also rose in unison.

China pushes stimulus package, global stock markets rise

According to CNBC , consumers’ views on the economy fell sharply in September, the largest drop in more than three years, as concerns about employment and business conditions intensified, the Conference Board reported on Tuesday. The committee's consumer confidence index fell to 98.7 from 105.6 in August, which was the largest monthly decline since August 2021 (that is, when the new crown epidemic broke out).

However, the market put aside the impact of the decline in consumer confidence and turned its attention to China's new round of economic stimulus measures. The People's Bank of China announced the most radical stimulus package since the epidemic in an attempt to prevent the world's second largest economy from falling into deflation and promote a push that is in line with government expectations. growth goals. Yesterday (9/24) global stock markets almost closed higher, with the S&P 500 and the Dow Jones Industrial Index reaching new highs. Cryptocurrencies such as Bitcoin and Ethereum also rose in unison.

( Radical money printing to save the economy! China launches the largest economic stimulus package since the epidemic, creating a short-term antidote )

Global easing supports risky assets such as cryptocurrencies

QCP Capital analysts said that China’s aggressive monetary measures, coupled with the Federal Reserve’s recent 50 basis point interest rate cut, and the global easing trend may support risk assets including cryptocurrencies in the near future.

QCP Capital has highlighted the growing positive sentiment towards Ethereum (ETH) in the derivatives market. Specifically, they observed a change in Ethereum options, where the front-end skew has shifted from puts to calls, indicating investors' expectations for price increases.

The implied volatility of Ethereum is 9% higher than that of Bitcoin, which shows that market sentiment is upward and expected volatility is higher.

( Ethereum performed better than Bitcoin after the Federal Reserve cut interest rates )