Bitcoin Surpasses $64,000 Following China's Economic Stimulus Announcement

China, US follow in monetary loosening… Announcement of 0.5%P cut in reserve requirement ratio
BTC breaks through $64,000… Altcoins, clear upward trend
Experts: "BTC Renews Highest Price in Unstable Times Following Gold"

Following the United States, China announced quantitative easing, and Bitcoin (BTC) rose and then settled in the $64,000 range.

The Chinese government announced on the 24th that it would cut the reserve requirement ratio (RRR) by 0.5 percentage points as a measure to achieve a 5% economic growth rate. The People’s Bank of China, China’s central bank, has cut the RRR four times since 2022, and in February of this year, it lowered it by 0.5 percentage points, bringing the current average RRR down to around 6.9%.

Following the US Federal Reserve's decision to lower its benchmark interest rate by 50 basis points through the Federal Open Market Committee (FOMC) last week, China has also taken steps to stimulate its economy.

Bitcoin, which had no particular positive news from China's announcement, safely defended $64,000 without any decline. With Bitcoin's strong defense, most altcoins rose, creating a bullish atmosphere.

◇Bitcoin = As of 5 PM on the 25th, the Bitcoin price on Upbit was 85.08 million won. Bitcoin’s market share (dominance) stood at 57.56%.

As Bitcoin broke through $64,000, there were opinions that Bitcoin would rally. In particular, opinions predicting a rise in safe-haven assets such as gold and 'digital gold' Bitcoin due to interest rate cuts attracted attention.

Crypto Briefing, a cryptocurrency media outlet, reported on the 25th that "many cryptocurrency experts are predicting that Bitcoin will follow gold," and "there are quite a few opinions that predict that Bitcoin will break the record high it set in March of this year before the end of the year."

The basis of Bitcoin optimism, following gold, is also the demand for hedging assets due to the uncertain macroeconomic situation. Crypto Briefing emphasized that "both gold and Bitcoin will see great demand as major means of protecting against inflation in uncertain times."

◇Rising Coin = As of 5 PM on the 25th, based on Upbit, the cryptocurrency with the largest increase compared to the previous trading day was Celo (CELO), rising by approximately 12%.

CeloToken is a blockchain open financial platform that serves as a global cryptocurrency payment infrastructure for mobile users. It aims to provide easy remittance and payment to any phone number in the world.

◇Fear and Greed Index = The cryptocurrency fear and greed index provided by Alternative has entered the 'Neutral' stage at 59 points. The neutral stage is a section where psychological resistance and support from market participants appear, and important decision-making actions occur in future price movements.

Reporter Kwon Seung-won ksw@