Bitcoin, Ethereum Surge on Chinese Stimulus, ETF Inflows

The cryptocurrency market experienced a significant surge today, driven by China's announcement of an $800 billion bond issuance aimed at stimulating economic growth and stabilizing its property market. This initiative has bolstered investor sentiment globally, leading to a substantial influx of capital into cryptocurrencies.

In addition to the Chinese stimulus, the market received a boost from Vice President Kamala Harris's campaign pledge to support regulation for cryptocurrency and digital assets. During a speech on Monday, Harris stated, "We will build a future where we have what I call an opportunity economy, where everyone can compete and have a real chance to not just get by, but to get ahead."

Although she did not specifically mention digital assets in her address, a campaign release highlighted that the Harris-Walz team is committed to establishing a regulatory framework to protect Black men who invest in and own cryptocurrencies. According to the campaign, over 20% of Black Americans currently own or have owned cryptocurrency assets. They emphasized the need for protections to ensure that these investors benefit from a robust regulatory environment.

In the wake of the dual positive news, Bitcoin and Ethereum saw remarkable ETF inflows, totaling $800 million over just two days. Bitcoin rose by 6.5% to sit at $65,658 at press time, after crossing the $66K mark in the early hours on Tuesday, while Ethereum outpaced its competitor with an impressive gain of 8.1% to sit at $2,617 currently, according to Coinmarketcap data.

BRN lead analyst Valentin Fournier said that the bond issuance is expected to enhance liquidity in global markets, a trend that historically benefits Bitcoin. Institutional investment has been a crucial factor in this upward momentum, suggesting a potential breakout from the recent downward trend.

"This strong momentum needs further confirmation. For them to enter a true acceleration phase, they must break through the upper end of its current trading range – $68,000 for BTC and $2,750 for ETH," Fournier noted.