Bitcoin price is consolidating near $64K as bulls and bears fight near the inflection point, with fundamental and technical analysis setting the stage for a rally to $100K. In a major news impacting Bitcoin, China’s central bank announced broad monetary stimulus measures and rate cuts to boost the economy.
People’s Bank of China (PBoC) Governor Pan Gongsheng announced on September 24 several measures to revive China’s economy amid concerns that the 2024 growth target of around 5% might be out of reach. It includes a 50 bps cut in the reserve requirement ratio, a 20 bps cut in key short-term interest rates, and monetary stimulus, reported Reuters.
The PBoC also plans to lower borrowing costs on up to $5.3 trillion in mortgages and relax rules for second-home purchases. This has boosted the Shanghai Stock Exchange by more than 4% in a day. Stock markets globally are in green today on cues from the Chinese stock market. However, Bitcoin price shows volatility amid buying in stock markets.
“This is the most significant PBOC stimulus package since the early days of the pandemic,” said Capital Economics analyst Julian Evans-Pritchard.
Another trigger for Bitcoin price hitting $100K is the recent switch by Russian authorities to crypto to pay for trade with China. Moscow Times reported that Russia will pay China in cryptocurrency for war supplies.
As CoinGape earlier reported, Russian authorities have planned the first group of importers to be allowed to pay for Chinese goods in digital currencies under an experimental legal regime. These included electronics manufacturers, some members of the Russian Chamber of Commerce and Industry, and several banks.
The primary goal is for the BRICS Group, a bloc of countries with some of the world’s leading economies. Member countries of this group are focused on challenging the dominance of USD.
After the 5o bps Fed rate cuts, the market shows optimism for new ATH for Bitcoin price. Experts believe the next wave of Bitcoin rally will not be driven by net inflows in spot Bitcoin ETFs. It will support the existing upward trend rather than lead the movement. The next bull market is driven by macro and technical factors.
Wall Street giants, analysts, and financial experts have predicted an average Bitcoin price rally to $100K-$150K this cycle. Bitcoin price chart is also forming a cup-and-handle pattern, which shows that a breakout could result in a massive bullish rally. But, Bitcoin needs to break above $67K and consolidate for a rally to $100K.
BTC price jumped 1% in the past 24 hours, with the price currently trading at $63,670. The 24-hour low and high are $62,737 and $63,944, respectively. Furthermore, the trading volume has decreased further by 7% in the last 24 hours, indicating a decline in interest among traders.
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