Bitcoin Soars to $63,000, Fueled by China's $283B Debt Stimulus and Massive Whale Accumulation

Altcoins like Ethereum and Solana also posted gains, riding the wave of market optimism. Bitcoin Whales Amass 1.5 Million BTC Amid Market Volatility

Bitcoin price quickly recovered from a drop below $60,000 earlier this week in response to rising US CPI data, mounting a robust comeback that saw the cryptocurrency climb as high as $63,000 on Monday.

Bitcoin whales, however, have not missed a single opportunity to accumulate BTC, especially amid the volatile market conditions.

Since March of this year, as much as 1.5 million Bitcoin, or roughly 7% of the total supply, has been acquired by these large investors. Notably, the top Bitcoin ETFs have also been amassing BTC, accumulating over 5% of the total supply, indicating strong institutional demand.

BlackRock, Metaplanet hoarding BTC amid market volatility

As Coingape previously reported, large investors such as BlackRock and Metaplanet have been accumulating BTC in recent weeks, adding to the institutional demand for the cryptocurrency despite the volatility in the market.

According to data from Santiment, institutional investors have been buying up Bitcoin at an increasing rate since August, with the seven-day moving average hitting a two-month high recently. This institutional demand could be a key factor in the cryptocurrency’s recent rally.

Altcoin market begins to recover, following Bitcoin’s lead

The altcoin market is also beginning to show signs of recovery, following Bitcoin's lead. The price of Ethereum (ETH) has risen by 1.65%, while Bitcoin Cash (BCH), Solana (SOL), and Dogecoin (DOGE) have all seen 3% increases.

China's debt stimulus sparks market optimism

Analysts are predicting that Bitcoin will reach $90,000 by the end of the year, in line with the expanding global monetary supply (M2). But Bitcoin investors have had a lackluster October so far, with no signs yet of the anticipated “Uptober” rally.

China on Monday announced a large increase in the issuance of government debt to provide low-income individuals with subsidies and a boost to the housing market.

Vague stimulus plans raise market concerns

Lan Foan, China's finance minister, also mentioned further "counter-cyclical measures" this year, but he didn't say how big the stimulus will be. "China can issue debt to a relatively large extent," said Lan. Earlier reports indicated that China is set to inject an additional $283 billion into the economy.

Global financial markets have been keeping a close eye on China's fiscal stimulus measures since a Politburo meeting in September highlighted the country's worsening economic problems.

Chinese stocks soared 25% within days of the meeting, reaching two-year highs. But the rally didn't last long as market jitters returned over the lack of specific details on the government's planned spending.

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