Bitcoin jumps to a seven-day high

Late last month, Bitcoin soared beyond $65,000 after China announced it would inject $113 billion of liquidity to support its ailing stocks

Bitcoin jumped to a seven-day high late Sunday evening as Asian stocks showed mixed results following China’s economic stimulus measures, announced during the weekend.

The crypto is trading 2.5 per cent higher on the day to $64,300—its highest point since October 7. It follows recent stimulus promises made by the world’s second-biggest economy on Saturday.

China has vowed to “significantly increase” its debt to support its weakening economy but provided no details on the size of the stimulus package, leaving investors in the dark about the potential impact on the sustainability of its recent stock market rally.

Asian equities were mixed on Sunday, with Chinese stocks showing some gains while other regional markets faced headwinds. The Shanghai Composite gained 1.6 per cent, buoyed by hopes following the announcement.

In Hong Kong, the Hang Seng Index declined 0.4 per cent, while Japan’s Nikkei 225 jumped 0.57 per cent, driven by gains in tech stocks. Markets in South Korea and Australia saw minor fluctuations.

Late last month, Bitcoin soared beyond $65,000 after China announced it would inject $113 billion of liquidity to support its ailing stocks. It also announced it would slash reserve requirements for banks while easing regulations for second-home purchases.

The Shanghai Composite is more than 20 per cent higher over the last month.

Experts believe China’s stimulus measures from its central bank will provide a boost to crypto throughout the remainder of the year amid a slash to interest rates abroad.

Several tailwinds have begun to converge for the world’s most popular crypto, including China’s stimulus, and an uplift from FTX’s bankruptcy payouts.