Bitcoin falls amid disappointment over China's stimulus package

NDRC, Ended the briefing without mentioning additional stimulus
BTC, Plunged to 8.2 million won as selling pressure poured in
Altcoins, Weakly 'bearish' following BTC's decline for 10 days
Experts "Market volatility should be noted according to the US CPI announcement"

Bitcoin (BTC) fell due to various factors related to China's economic stimulus.

Contrary to the previously announced large-scale economic stimulus, the Chinese government did not announce additional stimulus measures after the Chinese National Day holiday last month. It is analyzed that the cryptocurrency market, which had expected the activation of the asset market and the trickle-down effect due to the large-scale economic stimulus of the Chinese government, was disappointed by the selling pressure.

Cryptocurrency media Coindesk reported that "in the briefing held after the Chinese National Day holiday, the National Development and Reform Commission (NDRC) of China did not announce additional stimulus measures as expected," and "amid concerns about Middle East conflicts, the bitcoin price has declined slightly."

It was also suggested that the economic stimulus measures implemented by the Chinese government last month caused a surge in the Chinese stock market, and funds deposited in the cryptocurrency market flowed into the Chinese stock market.

The Chinese government announced a 0.5 percentage point reduction in the reserve requirement ratio (RRR) as a measure to achieve a 5% economic growth rate in China. The People's Bank of China, the central bank of China, has reduced the RRR four times since 2022, lowering the average RRR to around 6.9%.

After the Chinese government's economic stimulus, the Chinese stock market has been rising day by day. On the 10th, the Hang Seng Index closed 2.76% higher, and the Shanghai Composite Index closed 1.32% higher.

A domestic cryptocurrency-related official explained, "The phenomenon of the Chinese stock market rising day after day based on the Chinese government's economic stimulus is causing cryptocurrency market funds to flow into the Chinese stock market," and "rather than simply associating the Chinese stock market with the cryptocurrency market, the Chinese government's economic stimulus measures are having a significant impact on the cryptocurrency market."

Altcoins also showed a weak bearish trend following the decline of Bitcoin.

◇Bitcoin = As of 5 pm on the 10th, based on Upbit, the price of Bitcoin is 8,269 million won. Bitcoin's dominance is 57.86%.

It has been analyzed that Bitcoin may face greater volatility due to the US September Consumer Price Index (CPI).

Palentin Fournier, an analyst at digital asset analysis firm BRN, said, "Bitcoin rose over the weekend as the US unemployment rate in September was 0.1% lower than a month earlier at 4.1%," and "Bitcoin will face strong resistance between $65,000 and $67,000, but will eventually break through and retest the $68,000 level."

◇Rising Coins = As of 4:30 pm on the 10th, based on Upbit, the cryptocurrency that recorded the largest increase compared to the previous trading day was Gas (GAS), which rose about 8%.

Gas is the 'satellite' coin of Peg (NEO), the native token of the Peg blockchain. Peg is called the 'Chinese Ethereum' and is a 'DeFi platform' coin that can perform smart contracts. Each block on the Peg blockchain generates a certain amount of gas, and this gas is used as a fee for the implementation and operation of Peg smart contracts.

◇Fear and Greed Index = The Cryptocurrency Fear and Greed Index provided by Alternative is 39 points, entering the 'Fear' stage. The Fear stage (25-49) is a stage where price volatility and trading volume are high, and prices are falling. The possibility of forming a short-term bottom is high, so caution is needed when buying.