Bitcoin’s price is consolidating around $64,000 as bulls and bears battle near a crucial inflection point. Both fundamental and technical indicators suggest a potential rally toward $100,000. A major factor influencing the market is China’s recent economic stimulus, which could have far-reaching effects on global markets, including Bitcoin.
On September 24, Pan Gongsheng, Governor of the People’s Bank of China (PBoC), announced a series of measures aimed at reviving China’s economy. With concerns growing over whether China can meet its 2024 growth target of 5%, the PBoC introduced a 50 basis point cut in the reserve requirement ratio and a 20 basis point reduction in key short-term interest rates. These actions, along with broader monetary stimulus, are designed to boost liquidity and encourage borrowing. Reuters also reported that the PBoC plans to lower borrowing costs on up to $5.3 trillion in mortgages and ease restrictions on second-home purchases.
The impact was immediate. China’s Shanghai Stock Exchange surged by over 4% in a single day, sending positive signals across global stock markets. However, Bitcoin’s price remains volatile, despite the optimism in traditional financial markets.
Julian Evans-Pritchard, an analyst at Capital Economics, called this “the most significant PBoC stimulus package since the early days of the pandemic.” While the stock market response has been positive, the effects on Bitcoin remain uncertain. Still, the combination of favorable macroeconomic conditions and Bitcoin’s consolidation around key support levels could pave the way for a move toward $100,000. The coming weeks will be crucial as markets digest the global impact of China’s economic decisions.
Russia Uses Crypto To Trade With China
Another factor that could drive Bitcoin’s price toward $100K is Russia’s recent shift to cryptocurrency for trade with China. According to the Moscow Times, Russia plans to use crypto to pay for war supplies from China, a significant development in global trade.
As CoinGape previously reported, Russian authorities have outlined an experimental legal framework to allow the first group of importers to pay for Chinese goods in digital currencies. This group includes electronics manufacturers, some members of the Russian Chamber of Commerce and Industry, and several banks. The move represents a strategic shift in how Russia conducts trade, potentially increasing the adoption and demand for cryptocurrencies like Bitcoin.
The initiative is part of a broader strategy within the BRICS Group, a coalition of major emerging economies, including Brazil, Russia, India, China, and South Africa. This bloc is focused on reducing dependence on the US dollar and challenging its dominance in global trade. The use of digital currencies in trade between these countries could support Bitcoin’s upward momentum, as it aligns with the broader trend of seeking alternatives to traditional fiat currencies.
Bitcoin Price Gains Upside Pressure
Following the 50 bps Federal Reserve rate cuts, market sentiment is optimistic about Bitcoin reaching new all-time highs. However, experts suggest that the next Bitcoin rally will not be primarily driven by inflows from spot Bitcoin ETFs. Instead, these inflows will support the ongoing upward trend, but the rally itself will be fueled by macroeconomic and technical factors.
Wall Street analysts and financial experts are predicting Bitcoin’s price could rise to between $100K and $150K during this cycle. The current Bitcoin price chart is forming a cup-and-handle pattern, a bullish technical indicator. If this pattern plays out, it could lead to a significant price breakout and a major rally.
For Bitcoin to begin its climb toward $100K, it must first break through the key resistance level at $67K and consolidate above it. Achieving this would set the stage for the next phase of Bitcoin’s upward movement, with both macroeconomic trends and technical indicators favoring a continued rise in price.
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.
BTC’s Path to $100K: Key Factors Driving the Rally
BTC is currently consolidating near $64,000 as both bulls and bears battle near a crucial inflection point. The stage is set for a potential rally toward $100K, driven by a combination of technical patterns and macroeconomic shifts. China’s recent monetary stimulus, announced by the People’s Bank of China (PBoC), is a significant development. With rate cuts and other measures aimed at reviving its economy, China’s actions have had an immediate positive impact on global markets, although BTC remains volatile.
In addition to China’s stimulus, Russia’s shift to using cryptocurrency for trade with China, particularly for war supplies, adds another layer of support to BTC’s upward momentum. This move reflects the broader BRICS strategy to reduce reliance on the U.S. dollar, potentially increasing demand for digital currencies like BTC.
The recent 50 bps rate cuts by the U.S. Federal Reserve have also contributed to an optimistic market sentiment, with expectations of new all-time highs for BTC. While spot BTC ETFs may not lead the next rally, they will support the ongoing trend, with macroeconomic and technical factors playing a more decisive role.
Analysts and financial experts predict BTC’s price could rise to $100K-$150K in this cycle, with technical indicators such as the cup-and-handle pattern signaling a possible breakout. However, BTC must first break above the $67K resistance level and consolidate to trigger a sustained rally toward $100K.
