Bitcoin and Ethereum increased their gains on Wednesday, rising alongside U.S. financial markets as investors reacted to a combination of easing trade concerns and China’s latest efforts to stabilize its economy. Bitcoin rose 2.5 percent in the last 24 hours to near $92,000, contributing to a nine percent increase over the past seven days. Ethereum followed suit, rising 1.9 percent to $2,285.
The rise comes at a time when traders are assessing the potential economic consequences of escalating trade tensions between the U.S. and China, prompting Beijing to announce additional stimulus measures at the opening of the National People’s Congress. Chinese Premier Li Qiang acknowledged the external pressures facing the world’s second-largest economy, stating that an increasingly complex and harsher external environment could have a greater impact on China in areas such as trade, science, and technology, according to media reports. To counter this, Beijing is ramping up fiscal stimulus, with a higher target for the budget deficit and increased infrastructure spending.
– “With changing macro conditions, cryptocurrencies remain closely tied to stocks, with price movements reflecting broader economic changes,” wrote Singapore-based digital asset trading firm QCP Capital in a recent note.
Ammunition for Cryptocurrencies
They pointed to the first crypto summit at the White House scheduled for Friday as an additional catalyst that could boost investor hopes, but warned that sentiment could change dramatically, which has been a common feature of market activity in recent weeks.
