Chinese Stocks Plummet, Sparking Hopes for Bitcoin Rally
Following a strong Tuesday morning, Chinese stocks plummeted after the country's leading economic planner decided against implementing additional stimulus measures.
As of the latest updates, the Hang Seng Index (HSI) is down 7%, marking its largest single-day decline since the 2008 financial crisis. This downturn has caught the attention of Bitcoin and altcoin investors, who are hopeful for a shift of capital back into the crypto market.
In recent weeks, the Chinese stock market experienced significant growth, fueled by the People’s Bank of China’s announcement of a $140 billion stimulus package in mid-September. These measures propelled the market upwards, with an impressive 34% increase over three weeks.
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During this period, other Asian markets faced substantial foreign institutional investment (FII) withdrawals as capital rushed into China. This trend also impacted Bitcoin and altcoins, which had a sluggish start to October, dousing expectations for an “Uptober” rally.
The rally in Chinese stocks lost momentum after the National Development and Reform Commission, the country’s top economic planner, held back in unleashing any more major stimulus at a press briefing. @DavidInglesTV reports https://t.co/XcsGafIQ8X pic.twitter.com/thxBWjhxpQ
— Bloomberg TV (@BloombergTV) October 8, 2024
Now, with Chinese stocks losing steam, investors are eager to see how the situation unfolds and whether funds will start flowing back into BTC and altcoins, potentially sparking a rally. According to a recent report from CoinGape, Bitcoin may be positioning itself for a new all-time high this October.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
