Bitcoin traders are eyeing a potential rally to $100K, driven by China’s economic stimulus and Russia’s shift to crypto for trade with China. As Bitcoin hovers around $64K, the market shows signs of a possible breakout.
Can Bitcoin Price Hit $100K Amid China’s Economic Boost?
China’s central bank, reports Reuters, the People’s Bank of China (PBoC), has rolled out a significant monetary stimulus to rejuvenate its economy. On September 24, PBoC Governor Pan Gongsheng announced a series of measures to address concerns about reaching the 2024 growth target of 5%. These include a 50 bps cut in the reserve requirement ratio, a 20 bps reduction in key interest rates, and other monetary policies aimed at lowering borrowing costs on mortgages.
This news sparked a 4% rally in the Shanghai Stock Exchange, with global markets also reacting positively. However, Bitcoin has remained volatile, even as stock markets have surged.
Russia Turns to Crypto for Trade with China
Another factor driving Bitcoin’s potential rise to $100K is Russia’s decision to use cryptocurrency for trade with China. Russia has begun allowing certain importers, including electronics manufacturers and banks, to pay for Chinese goods using digital currencies. This move is part of a broader strategy by the BRICS group of nations, which includes Russia and China, to reduce reliance on the U.S. dollar.
Bitcoin Price Gaining Bullish Momentum
Following the Federal Reserve’s 50 bps rate cut, market optimism has increased, with Bitcoin poised for a new all-time high. While spot Bitcoin ETFs are unlikely to lead the charge, macroeconomic factors and technical signals are aligning for a significant rally.
Experts from Wall Street predict Bitcoin could reach between $100K and $150K during this cycle. The Bitcoin price chart shows a cup-and-handle pattern, a bullish signal that could push the price past $67K and into a surge toward $100K.
Bitcoin is currently trading at $63,670, with a 1% gain in the last 24 hours. Despite this, trading volume has dropped by 7%, signaling that some traders remain cautious.
