Chinese Money Supports Bitcoin

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NYDIG emphasized that the economic policy of the Chinese government, which decided to relieve the problems of the real estate sector with the help of $142 billion, allowed Bitcoin to show a return of 10%. And this is in September, which is usually a bearish month for the asset.

“Bitcoin is the best performer among all asset classes in 2024. The cryptocurrency is up 49.2% year-to-date, while Beijing’s economic policies and continued demand for U.S. spot ETFs, which attracted $4.3 billion in funds in the quarter, are supporting investor confidence in Bitcoin,” the report said.

The investment company's experts believe that China may announce additional economic stimulus measures on October 8 or 18, which is already strengthening the bullish sentiment in the crypto market.

An increase in the money supply and a further reduction in the interest rate by the US Federal Reserve System (FRS) will give Bitcoin an opportunity to recoup the weak beginning of October, analysts emphasized. The asset may receive an additional impetus for growth if Republican candidate Donald Trump wins the US presidential election on November 4, representatives of the New York Digital Investment Group said.

Earlier, experts from the CoinMarketCap platform said that the growth of the first cryptocurrency has accelerated and is now ahead of historical cycles by 100 days. Bitcoin may enter a supercycle in the spring of 2025, experts believe.