Bitcoin (BTC) Bounces 7% Above $63K as Crypto Traders Eye China Stimulus Statement

Solana's SOL, Avalanche's AVAX and Render's RNDR led the crypto rally as almost all but one member of the CoinDesk 20 Index posted gains.

Bitcoin price recovered sharply on Friday's session from the previous day's lows, quickly shrugging off concerns over hotter U.S. inflation readings and guiding investors toward a fiscal policy update from China.

After hotter CPI inflation figures sent bitcoin (BTC) to lows of $59,000 on Thursday, the cryptocurrency rebounded 7% from that trough. BTC rose 5.5% over the past 24 hours, outperforming the broader CoinDesk 20 Index's (CD20) 4.7% advance.

Crypto prices rebounded sharply on Friday as bitcoin approached $63K. Here's what to expect nextSolana (SOL), Avalanche (AVAX) and Render (RNDR) led the crypto rally as almost all but one member of the CoinDesk 20 Index posted gains.

The only token of the CD20 index with a negative daily return was Uniswap (UNI), which shed some of its Thursday gains that were spurred by the decentralized exchange's plan to launch its own layer-2 network.

Crypto prices sharply rebounded on Friday's session from the previous day's lows as key crypto units shrugged off concerns over hotter U.S. inflation readings and guided investors toward a fiscal policy update from China.

After hotter CPI inflation figures sent bitcoin (BTC) to lows of $59,000 on Thursday, the cryptocurrency rebounded 7% from that trough. BTC rose 5.5% over the past 24 hours, outperforming the broader CoinDesk 20 Index's (CD20) 4.7% advance.

Solana (SOL), Avalanche (AVAX) and Render (RNDR) led the crypto rally as almost all but one member of the CoinDesk 20 Index posted gains.

The only token of the CD20 index with a negative daily return was Uniswap (UNI), which slightly shed some of its Thursday gains that were spurred by the decentralized exchange's plan to launch its own layer-2 network.

The crypto rally happened as equities also gained, with the Dow and S&P 500 closing the week at record highs. The U.S. dollar index paused below 103 after steeply strengthening over the past week.

Crypto-related stocks also reflected the positive sentiment. Bitcoin miners MARA, RIOT and BTDR soared 5-10%, and U.S. crypto exchange Coinbase ended the day up 7%.

MicroStrategy, the largest corporate holder of BTC, surged 16% to its highest price since March 2000. Its share price premium versus its bitcoin holdings also broadened to the widest since 2021.

Macroeconomic factors influencing crypto prices have shifted away from monetary policy to the U.S. election outcome, Coinbase analysts said in a Friday report.

The key catalyst for crypto volatility might be the upcoming China fiscal policy update by the finance minister slated for early Saturday UTC. Investors anticipate more financial stimulus for the ailing Chinese economy and financial markets, which could reverberate in the digital asset market, the Coinbase report noted.

"As most markets will be closed during this next briefing, we expect traders could turn to crypto markets as a way to express their (proxy) views on the size and strength of China’s fiscal announcements," the authors said.

Markus Thielen, founder of 10x Research, noted that recent U.S. economic data shows a resilient economy and jobs market, allaying past concerns over an imminent recession.

"This sets the stage for risk assets to perform well into year-end, and it may take little to drive crypto prices higher," Thielen said. "A significant move is likely on the horizon, and diligent traders will be well-positioned to capture it."

Edited by Nikhil Gangurde for brevity.

Our standards: Disclosure Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.

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