Bitcoin Price Today: Approaching $67,000 Amid Risk-On Sentiment and China Stimulus

Bitcoin’s price reached a two-month high in early Friday trading, approaching $67,000 and marking a 3.2% increase over the past 24 hours. The original cryptocurrency has returned to levels not seen since July, fueled by a stock market rally that was sparked by positive U.S. labor market data and economic stimulus measures from China.

Recent news from China has provided a significant boost, as authorities are reportedly considering injecting up to 1 trillion yuan into the country’s largest state banks to stimulate the struggling economy. This announcement, coupled with a decrease in U.S. jobless claims—which fell by 4,000 to a four-month low of 218,000—has propelled risk-correlated assets, including cryptocurrencies and equity markets.

Additionally, China’s Politburo is committed to increasing fiscal spending and implementing “forceful” interest rate cuts to further support economic recovery.

Bitcoin’s recent surge began last week after the U.S. Federal Reserve announced its first interest rate cut since the onset of the COVID-19 pandemic, lowering rates by 50 basis points rather than the anticipated 25. Traders are now speculating on another rate cut at the upcoming Fed meeting on November 7, with many predicting a further reduction of 50 basis points based on the CME FedWatch Tool.

As Bitcoin continues to rise, U.S. spot bitcoin exchange-traded funds experienced total daily net inflows of $365.57 million on Thursday, the largest amount since late July. Leading this influx was Ark Invest and 21Shares’ ARKB, which attracted $113.82 million, followed closely by BlackRock’s iShares Bitcoin Trust, which saw inflows of $93.38 million. Fidelity’s Wise Origin Bitcoin Fund also reported $74 million in inflows, marking a reversal after weeks of stagnant or negative flows during a period of price struggle for Bitcoin.

In a broader context, risk appetite appears to be rebounding after months of caution. Dog-themed memecoins have led the way in the crypto market, with even less prominent dog-themed tokens utilizing the Bitcoin Runes protocol experiencing gains, indicating a growing willingness among investors to engage in riskier investments.