Bitcoin Loses as Chinese Stock Market Rise, Analysts Predict Temporary Slump
Date: 2024-10-08 Author: Henry Casey Categories: CRYPTO PAYMENTS
Following the recent economic stimulus aimed at reviving China’s economy, its stock markets have shown strong results. While Bitcoin had previously risen amid stimulus measures from the US and China, the situation has now changed. The Shanghai Stock Exchange and Hong Kong Stock Exchange indices have both risen significantly, causing investment flows to shift towards stocks.
Since September 24, the Shanghai Composite Index has risen 20.43% and the Hang Seng Index has risen 23.9%, attracting significant investment previously directed towards cryptocurrencies such as Bitcoin. As a result, Bitcoin, which had risen to $65,903 on September 28, has fallen to $60,658 by October 2 and continues to decline, causing concern among investors.
Analysts predict that Bitcoin's decline is temporary, but are unsure how sustainable the Chinese market's gains will be.
