Stronger-than-expected growth in the Chinese economy and falling oil prices boosted global risk appetite, causing Bitcoin to rise along with technology stocks.
Bitcoin started the new week with optimism in global markets, rising to around $82,500. At the time of writing, the price had gained 0.7% since midnight and approximately 1.3% in the last 24 hours.
The rally wasn’t limited to the cryptocurrency market. Nasdaq futures rose more than 1%, while Japan’s Nikkei index climbed 1.8% and South Korea’s Kospi index increased by 0.6%. These markets had been negatively impacted by sharp sell-offs in AI and semiconductor stocks the previous week.
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The most significant development supporting risk appetite was the economic growth data from China. According to figures released by the National Bureau of Statistics of China, the country’s economy grew by 4.5 percent year-on-year in the third quarter. This rate exceeded the 4.3 percent growth recorded in the second quarter.
Retail sales also showed that domestic demand was stronger than expected. Retail sales of consumer goods in China rose 1.1 percent, compared to market expectations of 0.5 percent. Given China’s weight in global manufacturing and commodity demand, strong data can boost demand for risky assets worldwide.
Oil prices giving back some of their gains from the previous week also provided support to the markets. A sustained decline in oil prices could ease inflationary pressures, allowing the US Federal Reserve to be more flexible in its monetary policy. The market expects the Fed to keep its policy rate steady at 4.75–5 percent this month.
However, it cannot be said that the rise in Bitcoin has been made permanent solely by the Chinese data. Geopolitical risks, the direction of oil prices, and upcoming US economic data could increase volatility again. The announced price also reflects the current market level; it does not represent a fixed value or target.
*This is not investment advice.